On July 1, 2021 ABC issued bonds dated March 1, 2021 and for their principal (maturity value) of 100,000. The contractual interest rate is equal to the effective interest rate of 14% (there is no premium or discount). On the issue date, the company recorded accrued interests with a credit to the interest payable account for $4,667. The bonds pay interest on March 1st and September 1st. How much will the interest expense account be debited for? to. $2,333 b. $9,333 C. $7,000 d. $4,667
On July 1, 2021 ABC issued bonds dated March 1, 2021 and for their principal (maturity value) of 100,000. The contractual interest rate is equal to the effective interest rate of 14% (there is no premium or discount). On the issue date, the company recorded accrued interests with a credit to the interest payable account for $4,667. The bonds pay interest on March 1st and September 1st. How much will the interest expense account be debited for? to. $2,333 b. $9,333 C. $7,000 d. $4,667
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 14MC: Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the...
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Question
![ESPAÑOL
INGLÉS
FRANCÉS
On July 1, 2021 ABC issued bonds dated March 1, 2021 and for their
principal (maturity value) of 100,000. The contractual interest rate is
equal to the effective interest rate of 14% (there is no premium or
discount). On the issue date, the company recorded accrued interests
with a credit to the interest payable account for $4,667. The bonds
pay interest on March 1st and September 1st. How much will the
interest expense account be debited for?
to.
$2,333
b.
$9,333
C.
$7,000
d.
$4,667
MacBook Air
V.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff54313ef-36a5-40fc-b2f7-69eac251621c%2Feaca63d7-d83c-4c22-a5f8-0437fdb0cd25%2Fvvqeo1_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ESPAÑOL
INGLÉS
FRANCÉS
On July 1, 2021 ABC issued bonds dated March 1, 2021 and for their
principal (maturity value) of 100,000. The contractual interest rate is
equal to the effective interest rate of 14% (there is no premium or
discount). On the issue date, the company recorded accrued interests
with a credit to the interest payable account for $4,667. The bonds
pay interest on March 1st and September 1st. How much will the
interest expense account be debited for?
to.
$2,333
b.
$9,333
C.
$7,000
d.
$4,667
MacBook Air
V.
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