Description of this paper

What is the amount of bond discount amortization for the June 30, 2005, adjusting entry

Description

solution


Question

Assume that a bond is issued with the following characteristics:Date of bonds: January 1, 2005, maturity date: January 1, 2010, face value: $200,000, Face interest rate: 10 percent paid semiannually (5 percent per period), market interest rate: 12 percent (6 percent per semiannual period), issue price: $185,280, bond discount is amortized using the effective interest method of amortization. What is the amount of bond discount amortization for the June 30, 2005, adjusting entry?;$559;$1,117;$10,000;$11,117

 

Paper#25260 | Written in 18-Jul-2015

Price : $22
SiteLock