On December 31, 2017, Evermore's Inc 's long-term obligation portion includes USD3,000,000 in 5-year 7% bonds payable, less USD111,529.97 in unamortized discnt. It was also found that these bonds were issued with a 6% yield (before bond issue costs). The effective interest technique was used to record the amortization of the bond discount. Each year, interest was paid on the first of January and the first of July. On July 1, 2017, how much did the bond issue cost and how much was the interest expense for the year 2017?
On December 31, 2017, Evermore's Inc 's long-term obligation portion includes USD3,000,000 in 5-year 7% bonds payable, less USD111,529.97 in unamortized discnt. It was also found that these bonds were issued with a 6% yield (before bond issue costs). The effective interest technique was used to record the amortization of the bond discount. Each year, interest was paid on the first of January and the first of July. On July 1, 2017, how much did the bond issue cost and how much was the interest expense for the year 2017?
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter14: Long-term Liabilities: Bonds And Notes
Section: Chapter Questions
Problem 6PA: Saverin, Inc. produces and sells outdoor equipment. On July 1, 2016, Saverin, Inc. issued 62,500,000...
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On December 31, 2017, Evermore's Inc 's long-term obligation portion includes USD3,000,000 in 5-year 7% bonds payable, less USD111,529.97 in unamortized discnt. It was also found that these bonds were issued with a 6% yield (before bond issue costs). The effective interest technique was used to record the amortization of the bond discount. Each year, interest was paid on the first of January and the first of July. On July 1, 2017, how much did the bond issue cost and how much was the interest expense for the year 2017?
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