Question

Account for bonds payable at a discount; amortize by the straight-line method

Requirements
1. Journalize the following transactions of Lamothe Communications, Inc.:


2. At December 31, 2012, after all year-end adjustments, determine the carrying amount of Lamothe Communications bonds payable, net.
3. For the six months ended July 1, 2012, determine the following for Lamothe Communications Inc:
a. Interest expense
b. Cash interest paid
What causes interest expense on the bonds to exceed cash interestpaid?


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  • CreatedApril 22, 2013
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