What would the company report for its net bond liability


Auerbach Inc. issued 4% bonds on October 1, 2016. The bonds have a maturity date of September 30, 2026 and a face value of $410 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2017. The effective interest rate established by the market was 6%.

Assuming that Auerbach issued the bonds for $358,905,000, what would the company report for its net bond liability balance after its first interest payment on March 31, 2017?

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Accounting Basics: What would the company report for its net bond liability
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