How much should be charged to interest expense in 2012


On January 2, 2012, a calendar-year corporation sold 8% bonds with a face value of  $900,000. These bonds mature in five years, and interest is paid semiannually on June 30  and December 31. The bonds were sold for $830,400 to yield 10%. Using the effective-  interest method of computing interest, how much should be charged to interest expense in 2012?

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Accounting Basics: How much should be charged to interest expense in 2012
Reference No:- TGS053505

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