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School
Seneca College **We aren't endorsed by this school
Course
ACF ACC220
Subject
Accounting
Date
Oct 19, 2023
Pages
1
Uploaded by KidKookabura178 on coursehero.com
15.3 Accounting for Bond Issues Your Answer Correct Answer v Your answer is correct. On Jan 1 Year 1, when the annual market interest rate was 4%, 5-year 5% bonds with a face value of $50,000 were issued for proceeds of $52,246. Interest is payable on June 30 and Dec 31 each year. On Dec 31 Year 2 the amortized cost was $51,400. On June 30 Year 3 interest expense was $1,045. $1,306. $1,028. $1,285. Solution $51,400 x 2%:; use the most recent amortized cost and the semiannual market rate.
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