Question

Bozena Inc. issued a $200,000, 8%, three-year bond on November 1, 2014, for cash of $194,792. Interest is to be paid quarterly. The annual market rate of interest is 9%. Assume a year-end of December 31. The amortization schedule, using the effective interest method, is shown below:


a. Record the issuance of the bond on November 1, 2014.
b. Record the accrual of bond interest at year-end, December 31, 2014, and the subsequent payment on February 1,2015.


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  • CreatedJanuary 08, 2015
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