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Eagle Corporation issued $9,950,000, 6 percent bonds dated April 1, year 1. The market interest rate was 7 percent, with interest paid each March 31. The bonds mature in three years, on March 31, year 4. Eagle’s fiscal year ends on December 31. Use Table 8C.1, Table 8C.2. Required: 1. What was the issue price of these bonds?  I already Calculated Bonds issue price: 9,688,892     2. Compute the interest expense for the period ended December 31, year 1. The company uses the effective-interest method of amortization.   interest expense: 508,666       3. Show how the bonds should be reported on the statement of financial position at December 31, year 1.  Please show your work and answer part 3  bonds Payable $

Eagle Corporation issued $9,950,000, 6 percent bonds dated April 1, year 1. The market interest rate was 7 percent, with interest paid each March 31. The bonds mature in three years, on March 31, year 4. Eagle’s fiscal year ends on December 31. Use Table 8C.1, Table 8C.2. Required: 1. What was the issue price of these bonds?  I already Calculated Bonds issue price: 9,688,892     2. Compute the interest expense for the period ended December 31, year 1. The company uses the effective-interest method of amortization.   interest expense: 508,666       3. Show how the bonds should be reported on the statement of financial position at December 31, year 1.  Please show your work and answer part 3  bonds Payable $

FINANCIAL ACCOUNTING
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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Eagle Corporation issued $9,950,000, 6 percent bonds dated April 1, year 1. The market interest rate was 7 percent, with interest paid each March 31. The bonds mature in three years, on March 31, year 4. Eagle’s fiscal year ends on December 31. Use Table 8C.1, Table 8C.2.

Required:

1. What was the issue price of these bonds? 

I already Calculated Bonds issue price: 9,688,892

 

 

2. Compute the interest expense for the period ended December 31, year 1. The company uses the effective-interest method of amortization. 

 interest expense: 508,666

 

 

 

3. Show how the bonds should be reported on the statement of financial position at December 31, year 1. 

Please show your work and answer part 3 

bonds Payable $
 
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