What is the amount of discount amortization


McCoy Corporation issued $100,000 of 7.5% 10-year bonds. The bonds are dated and sold January 1, 2013. Interest payment dates are January 1 and July 1. The bonds are issued for $96,602 to yeild the market interest rate of 8%. Using the effective-interest method, the interest expense that McCoy Corporation will record on July 1, 2013 is $3,864. What is the amount of discount amortization that McCoy Corporation will record on July 1, 2013, the first semiannual interest payment date?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: What is the amount of discount amortization
Reference No:- TGS0691501

Expected delivery within 24 Hours