On June 30, 2020, Cullumber Limited issued $3 million of 20-year, 10% bonds for $3,593,786, which provides
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On June 30, 2020, Cullumber Limited issued $3 million of 20-year, 10% bonds for $3,593,786, which provides a yield of 8%. The company uses the effective interest method to amortize any bond premium or discount. The bonds pay semi-annual interest on June 30 and December 31.
What is the total cost of borrowing over the life of the bond?
Show the proper presentation for the liability for bonds payable on the December 31, 2020 SFP.
Related Book For
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
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