The following data relate to a $2,000,000, 8% bond issued for a selected semiannual interest period: Bond carrying amount at beginning of period $2,125,000 Interest paid during period 160,000 Interest expense allocable to the period 148,750 (A) Were the bonds issued at a discount or at a premium? (B) What is the unamortized amount of the discount or premium account at the beginning of the period? (C) What account was debited to amortize the discount or premium?
Corporate Financial Accounting
Corporate Financial Accounting
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The following data relate to a $2,000,000, 8% bond issued for a selected semiannual interest period:
| Bond carrying amount at beginning of period | $2,125,000 |
| Interest paid during period | 160,000 |
| Interest expense allocable to the period | 148,750 |
(A) Were the bonds issued at a discount or at a premium? (B) What is the unamortized amount of the discount or premium account at the beginning of the period? (C) What account was debited to amortize the discount or premium?
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