Answered: bonds on January 2, 2022 for $540,000.…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EB: Chung Inc. issued $50,000 of 3-year bonds on January 1, 2018, with a stated rate of 4% and a market...

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Jorge Corp. issued $550,000 of 6%, 10-year bonds on January 2, 2022 for $540,000. In addition, the company incurred $50,000 in bond issue costs. Interest is paid annually on December 31. What is the correct amount of bond interest expense to be recorded on December 31, 2022 using GAAP? (Round any interest calculations two decimal places X.XX%)

Group of answer choices

$42,091

$33,000

Unable to determine.

$37,240

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