Smile company issued 6,000,000, 11%, 10-year bonds on May 31, 2020, when the market interest was 10%.
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Question:
Smile company issued 6,000,000, 11%, 10-year bonds on May 31, 2020, when the market interest was 10%. The bonds are priced at 106.25. The bonds pay interest on May 31 and November 30.
-What is the carrying amount of the bond on the December 31,2020 statement of financial position?
-What is the total interest that Smile company will record in the year 2020?
Related Book For
Accounting Principles Part 3
ISBN: 978-1118306802
6th Canadian edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
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