Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. exercise 14-8 your answer is incorrect. try again.

Exercise 14-8 Your answer is incorrect. Try again. Presented below are three independent situations. (a)...

60.1K

Verified Solution

Question

Accounting

image

Exercise 14-8 Your answer is incorrect. Try again. Presented below are three independent situations. (a) Cheyenne Co. sold $1,820,000 of 12%, 10-year bonds at 104 on January 1, 2017, The bonds were dated January 1, 2017, and pay interest on July 1 and January 1. If Cheyenne uses the straight-line method to amortize bond premium or discount, determine the amount of interest expense to be reported on July 1, 2017, and December 31, 2017. (Round answer to O decimal places, e.g. 38,548.) Interest expense to be recorded (b) Ayayai Inc. issued $610,000 of 8%, 10-year bonds on June 30, 2017, for $470,064. This price provided a yield of 12% on the bonds. Interest is payable semiannually on December 31 and June 30. If Ayayai uses the effective-interest method, determine the amount of interest expense to record if financial statements are issued on October 31, 2017. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to O decimal places, e.g. 38,548.) Interest expense to be recorded LINK TO TEXT

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students