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12
Given the Total Bond Exp, what is the JE for the Semiannual Interest Expense?
Given:
Total Bond Exp: 573,595
Life: 5 yrs
FV: 1,000,000
Rate: 10%
Issue Price: 926,405
Given:
Total Bond Exp: 573,595
Life: 5 yrs
FV: 1,000,000
Rate: 10%
Issue Price: 926,405
Bond Interest Exp 57,360
Discount on Bonds Payable 7,360
Cash 50,000
Cash:
1,000,000 x 10% x 1/2 = 50,000
Discount on Bonds Payable:
1,000,000 - 926,405 = 73,595 (rounded to 73,600) / 10 = 7,360
Bond Interest Exp
573,595 / 10 (rounded) = 57,360
Discount on Bonds Payable 7,360
Cash 50,000
Cash:
1,000,000 x 10% x 1/2 = 50,000
Discount on Bonds Payable:
1,000,000 - 926,405 = 73,595 (rounded to 73,600) / 10 = 7,360
Bond Interest Exp
573,595 / 10 (rounded) = 57,360
Flashcard info:
Author: savhighsmith
Main topic: Accounting
Topic: General
School / Univ.: UGA
City: Athens
Published: 01.05.2010