The following data relate to a $2,000,000, 8% bond issue for a selected semiannual interest period:Bond carrying amount at beginning of period ...... $2,125,000Interest paid during period .............. 160,000Interest expense allocable to the period .......... 148,750(a) Were the bonds issued at a discount or at a premium? (b) What is the unamortized amount of the discount or premium account at
The following data relate to a $2,000,000, 8% bond issue for a selected semiannual interest period:
Bond carrying amount at beginning of period ...... $2,125,000
Interest paid during period .............. 160,000
Interest expense allocable to the period .......... 148,750
(a) Were the bonds issued at a discount or at a premium?
(b) What is the unamortized amount of the discount or premium account at the beginning of the period?
(c) What account was debited to amortize the discount or premium?
Bond carrying amount at beginning of period ...... $2,125,000
Interest paid during period .............. 160,000
Interest expense allocable to the period .......... 148,750
(a) Were the bonds issued at a discount or at a premium?
(b) What is the unamortized amount of the discount or premium account at the beginning of the period?
(c) What account was debited to amortize the discount or premium?
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Related Book For 
Corporate Financial Accounting
15th Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
ISBN: 9781337398169