Natalie Co. sells its $900,000 of 10% bonds, dated January 1, 2020, on May 1, 2020,...
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Natalie Co. sells its $900,000 of 10% bonds, dated January 1, 2020, on May 1, 2020, bonds mature in five years. The interest is paid semiannually (July 1, and January 1). Natalie Co prepares its financial statement at December 31 each year. The bonds yield 12%, selling for $833,760. Question Answer 1- What is the cash amount to be received from bond's purchasers at May 1, 2020? 2- What is the interest expense for 2020? Question Answer 3-write the required entry at December 31, 2020. Natalie Co. sells its $900,000 of 10% bonds, dated January 1, 2020, on May 1, 2020, bonds mature in five years. The interest is paid semiannually (July 1, and January 1). Natalie Co prepares its financial statement at December 31 each year. The bonds yield 12%, selling for $833,760. Question Answer 1- What is the cash amount to be received from bond's purchasers at May 1, 2020? 2- What is the interest expense for 2020? Question Answer 3-write the required entry at December 31, 2020.
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Answer Solution Face value Issue price Premium on bonds payable So Cash proce... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0078025839
9th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Posted Date:
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