On December 31, 2017, Evermore's Inc 's long-term obligation portion includes USD3,000,000 in 5-year 7% bonds payable,
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On December 31, 2017, Evermore's Inc 's long-term obligation portion includes USD3,000,000 in 5-year 7% bonds payable, less USD111,529.97 in unamortized discount. It was also found that these bonds were issued with a 6% yield (before bond issue costs). The effective interest technique was used to record the amortization of the bond discount. Each year, interest was paid on the first of January and the first of July. On July 1, 2017, how much did the bond issue cost, and how much was the interest expense for the year 2017?
Related Book For
Fundamental Accounting Principles Volume 1
ISBN: 9781259259807
15th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
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