On January 1, 2015, Splash City issues $500,000 of 9% bonds, due in 20 years, with interest
Question:
Required:
1. Using an amortization schedule, show that the bonds have a carrying value of $458,633 on December 31, 2016.
2. If the market interest rate drops to 7% on December 31, 2016, it will cost $601,452 to retire the bonds. Record the retirement of the bonds on December 31, 2016.
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Related Book For
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
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