On January 1, 2018, Ling Services issued $ 176,000 of six-year, 12% bonds when the market interest
Fantastic news! We've Found the answer you've been seeking!
Question:
On January 1, 2018, Ling Services issued $ 176,000 of six-year, 12% bonds when the market interest rate was 11%. The issue price of the bonds was $ 180,110. Ling uses the effective-interest method to amortize the bond premium. Semiannual interest payments are made on June 30 and December 31 of each year. How much interest expense will be recorded when the first interest payment is made.
Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
Posted Date: