Answered

Westonci.ca offers fast, accurate answers to your questions. Join our community and get the insights you need now. Get quick and reliable answers to your questions from a dedicated community of professionals on our platform. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.

A company issues $14500000, 5.8%, 20-year bonds to yield 6% on January 1, 2020. Interest is paid on June 30 and December 31. The proceeds from the bonds are $14164836. Using effective-interest amortization, what will the carrying value of the bonds be on the December 31, 2020 balance sheet?

Sagot :

Answer:$14,709,481

Explanation:

$14,709,481

$14,703,108 + [($14,703,108 × .04) - $585,000] + [$14,706,232 × .04) - $585,000] = $14,709,481.

We hope our answers were helpful. Return anytime for more information and answers to any other questions you may have. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.