On January 2, 2020, a calendar-year corporation sold 5% bonds with a face value of $3180000. These bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $2916000 to yield 7%. Using the effective- interest method of computing interest, how much should be charged to interest expense in 2020? O $159000. O $222600. O $204120. O $204910.

On January 2, 2020, a calendar-year corporation sold 5% bonds with a face value of $3180000. These bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $2916000 to yield 7%. Using the effective- interest method of computing interest, how much should be charged to interest expense in 2020? O $159000. O $222600. O $204120. O $204910.

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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Hh1.
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please use P*R*T fomular as well. Thanks