Ten year 5% bonds with a $500,000 face value were sold at a discount of...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Ten year 5% bonds with a $500,000 face value were sold at a discount of $50,000. At the end of Year 3, the bonds' net carrying value on the balance sheet would be
$515,000
$485,000
$465,000
$500,000
On January 1, 2026, $1,000,000, 10-year, 10% bonds, were issued for $1,030,000. Interest is paid annually on January 1. If the issuing corporation uses the straight-line method (i.e., spread out evenly over 10 years) to amortize premiums on bonds payable, the annual interest expense reported on the income statement is:
$97,000
$100,000
$103,000
$130,000
Ten year 5% bonds with a $500,000 face value were sold at a discount of $50,000. At the end of Year 3, the bonds' net carrying value on the balance sheet would be O $515,000 $485,000 $465,000 O $500,000 On January 1, 2026, $1,000,000, 10-year, 10% bonds, were issued for $1,030,000. Interest is paid annually on January 1. If the issuing corporation uses the straight-line method (i.e., spread out evenly over 10 years) to amortize premiums on bonds payable, the annual interest expense reported on the income statement is: O $97,000 O $100,000 $103,000 O $130,000
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
