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 I already asked this question before and it was wrong, the answer isn't 9,749,808
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 I already asked this question before and it was wrong, the answer isn't 9,749,808
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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
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
Please show your work and answer part 3
I already asked this question before and it was wrong, the answer isn't 9,749,808
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