WholeGoods issue $760,000 of it's 20 year 8% bonds. The bonds were priced to yield 10%. WholeGoods uses the effective interest method to record its semi-annual interest payments. 1. Record June 30, 2024 Interest payments 2. Record December 31, 2024 interest payments 3. On December 31, 2024, the fair value of the bonds was $636,000 as determined by market value. General risk free rates did not change in 2024. Record the entry to adjust the bonds to their fair value. 4. What is 2024 total interest expense?

WholeGoods issue $760,000 of it's 20 year 8% bonds. The bonds were priced to yield 10%. WholeGoods uses the effective interest method to record its semi-annual interest payments. 1. Record June 30, 2024 Interest payments 2. Record December 31, 2024 interest payments 3. On December 31, 2024, the fair value of the bonds was $636,000 as determined by market value. General risk free rates did not change in 2024. Record the entry to adjust the bonds to their fair value. 4. What is 2024 total interest expense?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 15MCQ

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