Oak Ridge Technologies issued $200,000 face value of bonds on January 1, 2021. The bonds had a 5 percent stated rate of interest and a 4-year term. Interest is paid in cash annually, beginning December 31, 2021. The bonds were issued at 97. (Use straight-line amortization for the bond discount or premium.) Determine the carrying value of the bond liability as of December 31, 2021.

Oak Ridge Technologies issued $200,000 face value of bonds on January 1, 2021. The bonds had a 5 percent stated rate of interest and a 4-year term. Interest is paid in cash annually, beginning December 31, 2021. The bonds were issued at 97. (Use straight-line amortization for the bond discount or premium.) Determine the carrying value of the bond liability as of December 31, 2021.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 6PA: Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...

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