On December 1 Spearmint, Incorporated, issuèd $450,000 of 9 percent, 3-year bonds for cash of $461,795. The bonds pay interest semiannually. The total cost of borrowing equals • $109,705 O $121,500 $450,000 $461,795

On December 1 Spearmint, Incorporated, issuèd $450,000 of 9 percent, 3-year bonds for cash of $461,795. The bonds pay interest semiannually. The total cost of borrowing equals • $109,705 O $121,500 $450,000 $461,795

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 8EB: Allante Corporate issued 50 bonds with a face value of $1,000 and a stated rate of 4% and received...

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Question

How do you get 109,705?

On December 1 Spearmint, Incorporated, issuèd $450,000 of 9 percent, 3-year bonds for cash of $461,795. The bonds pay interest
semiannually. The total cost of borrowing equals
• $109,705 O
$121,500
$450,000
$461,795

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