Description of this paper

On October 1, 2004, Porter Co. purchased to hold to maturity, 1,200, $1,000, 9% bonds for $1,188,000 which includes $18,000 accrued interest.

Description

solution


Question

On October 1, 2004, Porter Co. purchased to hold to maturity, 1,200, $1,000, 9% bonds for $1,188,000 which includes $18,000 accrued interest. The bonds, which mature on February 1, 2013, pay interest semiannually on February 1 and August 1. Porter uses the straight-line method of amortization. The bonds should be reported in the December 31, 2004 balance sheet at a carrying value of;a. $1,170,000;b. $1,170,900;c. $1,188,000;d. $1,188,360

 

Paper#25003 | Written in 18-Jul-2015

Price : $22
SiteLock