WholeGoods issue $760,000 of it's 20 year 8% bonds. The bonds were priced to yield 10%. WholeGoods
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Question:
WholeGoods issue $760,000 of it's 20 year 8% bonds. The bonds were priced to yield 10%. WholeGoods uses the effective interest method to record its semi-annual interest payments.
- Required
- Record June 30, 2024 Interest payments
- Record December 31, 2024 interest payments
- On December 31, 2024, the fair value of the bonds was $636,000 as determined by market value. General risk free rates did not change in 2024. Record the entry to adjust the bonds to their fair value.
- What is 2024 total interest expense?
Related Book For
Intermediate Accounting
ISBN: 978-1118300855
10th Canadian Edition Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy
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