Data related to a bond issued by Roxon enterprises is given below: Interest expense on bond Increase in interest payable on bond Decrease in discount on bond $800,000 $8,000 $2,000 Cash paid for interest on bond is: a. $790,000

Data related to a bond issued by Roxon enterprises is given below: Interest expense on bond Increase in interest payable on bond Decrease in discount on bond $800,000 $8,000 $2,000 Cash paid for interest on bond is: a. $790,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 17MC: Huang Inc. issued 100 bonds with a face value of $1,000 and a 5-year term at $960 each. The journal...

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Question

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Data related to a bond issued by Roxon enterprises is given below:
Interest expense on bond
Increase in interest payable on bond
Decrease in discount on bond
$800,000
$8,000
$2,000
Cash paid for interest on bond is:
a. $790,000
b. $806,000
c. $784,000
d. $910,000

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