On the first day of it's fiscal year, Ebert Co. issued $11,000,000 of 10-year, 7% bonds to finance it's operations. Interest is payable semiannually. The bonds were issued at a market interest rate of 9%, resulting in Ebert receiving cash of $9,569,097. The company uses the interest method. What is the first interest payment on June 30, and second interest payment on Dec. 31 including amortization of discount?
On the first day of it's fiscal year, Ebert Co. issued $11,000,000 of 10-year, 7% bonds to finance it's operations. Interest is payable semiannually. The bonds were issued at a market interest rate of 9%, resulting in Ebert receiving cash of $9,569,097. The company uses the interest method. What is the first interest payment on June 30, and second interest payment on Dec. 31 including amortization of discount?
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 14MC: Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the...
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On the first day of it's fiscal year, Ebert Co. issued $11,000,000 of 10-year, 7% bonds to finance it's operations. Interest is payable semiannually. The bonds were issued at a market interest rate of 9%, resulting in Ebert receiving cash of $9,569,097. The company uses the interest method. What is the first interest payment on June 30, and second interest payment on Dec. 31 including amortization of discount?
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