On January 1 of Year 1, Congo Express Airways issued $3,250,000 of 7% bonds that...
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Accounting
On January 1 of Year 1, Congo Express Airways issued $3,250,000 of 7% bonds that pay interest semiannually on January 1 and July 1. The bond issue price is $2,970,000 and the market rate of interest for similar bonds is 8%. The bond premium or discount is being amortized at a rate of $9,333 every six months. The company's December 31, Year 1 balance sheet should reflect total liabilities associated with the bond issue in the amount of:
$3,102,416.
$3,511,334.
$2,988,666.
$3,625,084.
$2,874,916.
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