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zimovet [89]
3 years ago
6

On January 1, 20X1 when the effective interest rate was 14%, a company issued bonds with a maturity value of $1,000,000. The sta

ted rate of interest is 12%, the bonds pay interest semi-annually and sold for $893,640. The amount of bond discount amortized on July 1, 20X1 is approximately:__________.
Business
1 answer:
IRINA_888 [86]3 years ago
5 0

Answer: $2,555

Explanation:

Bond discount amortization = Interest cost - Coupon payment

Coupon payment = Stated interest * Par value

= 12% * 1,000,000 * 6/12 months

= $60,000

Interest cost = Issue price * effective interest

= 893,640 * 14% * 6/12

= $62,554.80

Amortized amount:

= 62,554.80 - 60,000

= $2,554.80

= $2,555

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3 years ago
Assume the following data concerning a purchase of merchandise by Icon Co. on April 2:
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The purchase amount that Icon Co. would record on April 2 would be: <u>c. $4,000</u>.

<h3>What is the purchase amount to be recorded?</h3>

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Learn more about recording credit purchases at brainly.com/question/5651500

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1 year ago
The 2017 balance sheet of Kerber’s Tennis Shop, Inc., showed long-term debt of $1.87 million, and the 2018 balance sheet showed
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Answer:

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