A company issues $15,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2022. Interest is paid onJune 30 and December 31. Te proceeds from the bonds are $14,703,120. If the straight-line method ofamortization is used, what carrying value will be reported for the bonds on the December 31, 2024 balancesheet?A. $14,752,672B. $14,955,466C. $14,725,374D. $14,732,808

Bonds/Notes are the instruments/ securities issued by the companies to raise funds for the company…

Answered: A company issues $15,000,000, 7.8%,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 1, 2021, BLITZEN Company issued 10% bonds dated January 1, 2021 with a face amount of ₱8,000,000. The bonds mature on December 31, 2026. For bonds of similar risk and maturity, the market yield is 14%. Interest is paid semi-annually on June 30 and December 31. (Use at most, 4 decimalplaces for PV factors)Requirements: 24. How much is the interest expense for the year ended, December 31, 2022? 25. What is the carrying amount of the bonds on December 31, 2022?
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please step by step answer.
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