1. On July 1, 2017, Paton Corp. issued 9% bonds in the face amount of $8,000,000, which...
Question:
1. On July 1, 2017, Paton Corp. issued 9% bonds in the face amount of $8,000,000, which mature on July 1, 2023. The bonds were issued for $7,648,000 to yield 10%, resulting in a bond discount of $352,000. Paton uses the effective-interest method of amortizing bond discount. Interest is payable annually on June 30. On June 30, 2019, Paton's unamortized bond discount should be which of the following?
2. The Coral Company issues $10,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2017. Interest is paid on June 30 and December 31. The proceeds from the bonds are $9,802,072. Using straight-line amortization, the carrying value of the bonds on December 31, 2020, is...
Financial Reporting and Analysis
ISBN: 978-1259722653
7th edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer