At the beginning of 2010, Winston Corporation issued 10% bonds with a face value of $600,000....
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At the beginning of 2010, Winston Corporation issued 10% bonds with a face value of $600,000. These bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for 555,840 to yield 12%. Winston uses a calendar-year reporting period. Using the effective-interest method of amortization, what amount of interest expense should be reported for 2010? (Round your answer to the nearest dollar.) a. $66,500 b. $66,700 c. $66,901 d. $68,832 At the beginning of 2010, Winston Corporation issued 10% bonds with a face value of $600,000. These bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for 555,840 to yield 12%. Winston uses a calendar-year reporting period. Using the effective-interest method of amortization, what amount of interest expense should be reported for 2010? (Round your answer to the nearest dollar.) a. $66,500 b. $66,700 c. $66,901 d. $68,832
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Answer A 66500 Face Value of the Bond 600000 Coupon rat... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324312140
16th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
Posted Date:
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