On January 1, 2012, Wormer Company issues $200,000 of 6% bonds. Interest of $6,000 is payable semi-annually on June 30 and Dec 31. The bonds mature in 5 years and sell for $191,684. On June 30, 2012, the company recognizes interest expense of $6,709. As a result of recognizing this transaction, the bond carrying value will:
Increase by $709.
Interest expense is usually $6000.
$709 is the leftover amount, so it increases the liability and is reflected as a reduction in the discount (a contra-liability account).
Essentially, it is a discount on bonds payable.
Answers: 1
Business, 21.06.2019 19:30
Why does the united states government provide tax breaks related to the amount of money companies spend on research and development? a. to provide incentives for companies to conduct research and development to allow antitrust authorities b. to challenge joint research efforts c. to protect the right of inventors d. to produce and sell their inventions e. to involve less government scrutiny than a government funded project
Answers: 1
Business, 22.06.2019 03:00
Which of the following is not a consideration when determining your asset allocation
Answers: 3
Business, 22.06.2019 23:00
You cannot make copies of media, even as a personal backup, without violating copyright. true
Answers: 3
Business, 23.06.2019 06:00
What can be concluded from the data about the reliability and validity of the thermometers
Answers: 2
On January 1, 2012, Wormer Company issues $200,000 of 6% bonds. Interest of $6,000 is payable semi-a...
Advanced Placement (AP), 08.12.2020 21:00
Mathematics, 08.12.2020 21:00
Business, 08.12.2020 21:00
World Languages, 08.12.2020 21:00
Chemistry, 08.12.2020 21:00
Mathematics, 08.12.2020 21:00
Mathematics, 08.12.2020 21:00
Mathematics, 08.12.2020 21:10
Mathematics, 08.12.2020 21:10
Mathematics, 08.12.2020 21:10
Biology, 08.12.2020 21:10
English, 08.12.2020 21:10
Mathematics, 08.12.2020 21:10
History, 08.12.2020 21:10