On January 1, Nicholas Corporation issued ($ 1,000,000), 14%, 5 -year bonds with interest payable on December
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On January 1, Nicholas Corporation issued \(\$ 1,000,000\), 14%, 5 -year bonds with interest payable on December 31 . The bonds sold for \(\$ 1,072,096\). The market rate of interest for these bonds was \(12 \%\). On the first interest date, using the effective-interest method, the debit entry to Interest Expense is for:
a. \(\$ 120,000\).
b. \(\$ 125,581\).
c. \(\$ 128,652\).
d. \(\$ 140,000\).
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Related Book For
Financial Accounting Tools For Business Decision Making
ISBN: 9781119791089
10th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Jill E. Mitchell
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