On July 1, 2018, McNamara Company issued for $598,964, 10%, 20-year bonds with a face value of $500,000. Interest is paid semiannually on December 31 and June 30. The bonds were issued to yield 8%. The company uses the straight-line method to recognize interest expense. What is the carrying amount of the bonds on the company's December 31, 2019, balance sheet (rounded to the nearest dollar? This is the answer, how do you get here? C) $591,542
On July 1, 2018, McNamara Company issued for $598,964, 10%, 20-year bonds with a face value of $500,000. Interest is paid semiannually on December 31 and June 30. The bonds were issued to yield 8%. The company uses the straight-line method to recognize interest expense. What is the carrying amount of the bonds on the company's December 31, 2019, balance sheet (rounded to the nearest dollar? This is the answer, how do you get here? C) $591,542
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 8RE
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On July 1, 2018, McNamara Company issued for $598,964, 10%, 20-year bonds with a face value of $500,000. Interest is paid semiannually on December 31 and June 30. The bonds were issued to yield 8%. The company uses the straight-line method to recognize interest expense. What is the carrying amount of the bonds on the company's December 31, 2019, balance sheet (rounded to the nearest dollar?
This is the answer, how do you get here? C) $591,542
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