On January 1, 20x1, Trec, Inc. issued $50,000 of ten-year 6% bonds for $43,800. Interest was...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On January 1, 20x1, Trec, Inc. issued $50,000 of ten-year 6% bonds for $43,800. Interest was payable semiannually. The effective yield was 8%. The effective interest method of discount amortization was used. What amount of interest expense should be recorded for the six-month period ending December 31, 20x1? O $1,500 O $1,762 O $2,000 O $1,752 O $1,314 On January 1, 20x1, Trec, Inc. issued $50,000 of ten-year 6% bonds for $43,800. Interest was payable semiannually. The effective yield was 8%. The effective interest method of discount amortization was used. What amount of interest expense should be recorded for the six-month period ending December 31, 20x1? O $1,500 O $1,762 O $2,000 O $1,752 O $1,314
Expert Answer:
Answer rating: 100% (QA)
1762 Explanation Date Semi annual Interest Payment 3 Interest expense 4 Amorti... View the full answer
Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
Students also viewed these accounting questions
-
On January 1 20X1 Alpha Inc purchased 400000 95 bonds of Theta Limited The bonds pay interest annually every December 31 and would mature on December 31 20x5 The bonds were acquired to yield 1025...
-
Write out the equilibrium constant expressions for the following reaction: N2 (g) + O2 (g) 2 NO (g)
-
A corporation with an accounting period ending December 31 estimates that its taxable income for the year will be $1,200,000. a. When will the corporations first quarterly estimated tax payment be...
-
explain the term " system development" and describe the steps involved in system development
-
Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the Broadus County Courthouse Bonds Debt Service Fund for 20X6, given the following information: Fund balance, January...
-
Use matrices A, B, C, and D to find the indicated matrices. If the operations cannot be performed, explain why. 2C + D A || 6-3 4 -5 B 1) -1 4 -7 2 -6 11 3 12 -9 -6 D= 79 -6 -4 0 8 16000
-
Which portfolio of debt and equity securities is always reported as a current asset in the balance sheet? a. Treasury shares. b. Held-to-maturity securities. c. Available-for-sale securities. d....
-
Dell Computer Company produces computers. The following data and descriptions are from the company's annual report ($ in millions): Assume that Dell uses the periodic inventory system. Suppose a...
-
A sphere has a volume charge density of 12.5 nC/m. If the sphere's radius increases by a factor of 2 (but the total charge stays the same), what is the new volume charge density?
-
An airline company wishes to reduce the customer waiting time at the gates at a major airport using Taguchi Design of Experiments. The management decides to use Taguchi design of experiments for this...
-
R-COOH R-COO +H* A. Answer *carboxylic acid* or *carboxylate* the molecule serving as each of the following in the Bronsted-Lowry equilibrium above. acid conjugate base base conjugate acid
-
Describe the organizational culture of the organization of your choice. Consider the following in your response: What is the organization's mission and vision? How have you seen the organization's...
-
You are to design an airport for small planes. One kind of airplane that might use this airfield must reach a speed before takeoff of at least 30.0 m/s, and can accelerate at a constant acceleration...
-
1. Release data must be sent electronically unless there is a specific reason why it cannot be done. Provide 3 reasons why release data cannot be submitted electronically. 2. Describe CBSA's Machine...
-
Selected financial information (000's): Sales Cost of goods sold Gross profit Operating expenses Pretax profit Income tax expense Net profit after 20Y1 $77,112 39,168 37,944 33,660 4,284 2,142 2,142...
-
complete these python: json_data={"column...
-
In the code below, list is a(n) public int distance (int { int sum = 0; for (int num: list) sum sum + num; return sum; } array ArrayList unknown type String list)
-
U.S. households have become smaller over the years. The following table from the 2010 GSS contains information on the number of people currently aged 18 years or older living in a respondent's...
-
On January 1, 2013, Medical Transport Companys accumulated postretirement benefit obligation was $25 million. At the end of 2013, retiree benefits paid were $3 million. Service cost for 2013 is $7...
-
On July 15, 2013, the Nixon Car Company purchased 1,000 tires from the Harwell Company for $50 each. The terms of the sale were 2/10, n/30. Nixon uses a periodic inventory system and the gross method...
-
Comparative balance sheets for 2013 and 2012, a statement of income for 2013, and additional information from the accounting records of Red, Inc., are provided below. Additional information from the...
-
A thermodynamic system (a) Is a definite quantity of matter (b) Is surrounded by a boundary (c) Can exchange energy with its surroundings (d) All of these.
-
A system is said to be in thermodynamic equilibrium if its (a) Temperature remains unchanged (b) Pressure remains unchanged (c) Chemical potential remains unchanged (d) Temperature, pressure and...
-
A system initially containing \(3 \mathrm{~mol} \mathrm{CO}_{2}, 5 \mathrm{~mol} \mathrm{H}_{2}\) and \(1 \mathrm{~mol} \mathrm{H}_{2} \mathrm{O}\) is undergoing the following reactions: \[...
Study smarter with the SolutionInn App