On January 1, 2014, ABC Company issued a $55000,14%, 6 year bond for $59611.11, since the...

 

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On January 1, 2014, "ABC" Company issued a $55000,14%, 6 year bond for $59611.11, since the effective interest rate was 12%. Interest is payable on January 1st and July 1st. "ABC" Company uses the effective-interest method to amortize all premiums and discounts. Instructions: Based on the above given information, answer the following questions: 1) (2.00 Points) What is the bond's carrying value as 31/12/2014? 1) (2.00 Points) How much interest expense should be recorded on January 1st, 2015? 2) (2.00 Points) How much interest expense should be recorded on July 1st, 2015? 3) (3.00 Points) At what value should the bond payable account be presented in the non-current liability? On January 1, 2014, "ABC" Company issued a $55000,14%, 6 year bond for $59611.11, since the effective interest rate was 12%. Interest is payable on January 1st and July 1st. "ABC" Company uses the effective-interest method to amortize all premiums and discounts. Instructions: Based on the above given information, answer the following questions: 1) (2.00 Points) What is the bond's carrying value as 31/12/2014? 1) (2.00 Points) How much interest expense should be recorded on January 1st, 2015? 2) (2.00 Points) How much interest expense should be recorded on July 1st, 2015? 3) (3.00 Points) At what value should the bond payable account be presented in the non-current liability?

Answer rating: 100% (QA)

1 Carrying Value of Bond as on 311214 5904804 1 Interest Expense to be recorded on January 1st 2015 ... View the full answer