Issued $3,100,000 of 8% bonds that pay interest semiannually on january 1 and july 1....
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Issued $3,100,000 of 8% bonds that pay interest semiannually on january 1 and july 1. The bond issue price is $2,850,000 and the market rate of interest for similar bonds is 9%. The bond premium or discount is being amortized at a rate of $8,333 every 6 months. The compans december 31, year 1 balance sheet should reflect total liabilities associated with the bond issue (including interest) in the amount of: A) 2,990,666 B) 3,333,334 C) 2,742,666 D) 3,457,334 E) 2,866,666
Issued $3,100,000 of 8% bonds that pay interest semiannually on january 1 and july 1. The bond issue price is $2,850,000 and the market rate of interest for similar bonds is 9%. The bond premium or discount is being amortized at a rate of $8,333 every 6 months. The compans december 31, year 1 balance sheet should reflect total liabilities associated with the bond issue (including interest) in the amount of: A) 2,990,666 B) 3,333,334 C) 2,742,666 D) 3,457,334 E) 2,866,666
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