Interest at the effective rate


On January 1, 2011, Legion Corporation issued $290,000 of 4% interest, 10 year bonds. Interest paid semi-annually on June & December. The bonds sold for $156,949, priced to yield 12% interest. Legion records interest at the effective rate. Legion should report bond interest expense for the 6 months that ended June 2021, in the amount of ??

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Accounting Basics: Interest at the effective rate
Reference No:- TGS058749

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