InterTech Corporation needed financing to build a new
manufacturing plant. On June 30, 2017, InterTech issued...
60.1K
Verified Solution
Link Copied!
Question
Accounting
InterTech Corporation needed financing to build a newmanufacturing plant. On June 30, 2017, InterTech issued $4,350,000of 8-year bonds with a 6% coupon rate (payments due on December31st and June 30th). The effective interest rate was 8%.
What amount in interest expense did InterTech record for theJune 30, 2018 payment?
Answer & Explanation
Solved by verified expert
3.8 Ratings (549 Votes)
Interest expense to be recorded on June 30 2018 154654 Bond will be issued at discount so some part of interest will have parts of Discount on bond Working Bonds issue price is calculated by ADDING the Discounted face value of bonds
See Answer
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: Zin AI - Your personal assistant for all your inquiries!
