Effective-interest method of amortization problem


At the beginning of 2010, Winston Corporation issued 10% bonds with a face value of $600,000. These bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for 555,840 to yield 12%. Winston uses a calendar-year reporting period. Using the effective-interest method of amortization, what amount of interest expense should be reported for 2010?

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Accounting Basics: Effective-interest method of amortization problem
Reference No:- TGS080546

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