The Master Corp issued $300,000 at 7.5% 10 yr bonds. The bonds are dated and sold on
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The Master Corp issued $300,000 at 7.5% 10 yr bonds. The bonds are dated and sold on Jan 1, 2013. The interest payment dates are Jan 1, Jul 1. The bonds are issued for $289,688. The amount of interest rate is 8%. In the 1st semiannual interest payment date July 1, 2013 the company recorded $11,588 in interest expense and $338 in discount amortization. Using the effective interest method what is the carrying amount of the bond on Jan 1, 2014 balance sheet?
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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