Rush issued callable bonds on January 1. 2021. Rush's accountant has projected the following amortization schedule from issuance unti maturity Interest Increase in Expense Carrying Value Carrying Value Date Cash Paid 01/01/2021 06/30/2021 $313,773 $16,500 $18,826 18,966 19,114 19,271 19,437 19,613 $2,326 316,099 12/31/2021 16,500 16,500 16,Se0 16,500 16,500 2,466 318,565 OG/30/2022 12/31/2022 06/30/2023 12/31/2023 2,614 2,771 321,179 323,950 2,937 326, 887 3,11) 330,000 What is the annual stated interest rate on the bonds? (Hint: Be sure to provide the annual rate rather than the sixmonth rate) (Do not round your intermediete calculetions) Mutple Choice < Prev 19 of 20 Na

Rush issued callable bonds on January 1. 2021. Rush's accountant has projected the following amortization schedule from issuance unti maturity Interest Increase in Expense Carrying Value Carrying Value Date Cash Paid 01/01/2021 06/30/2021 $313,773 $16,500 $18,826 18,966 19,114 19,271 19,437 19,613 $2,326 316,099 12/31/2021 16,500 16,500 16,Se0 16,500 16,500 2,466 318,565 OG/30/2022 12/31/2022 06/30/2023 12/31/2023 2,614 2,771 321,179 323,950 2,937 326, 887 3,11) 330,000 What is the annual stated interest rate on the bonds? (Hint: Be sure to provide the annual rate rather than the sixmonth rate) (Do not round your intermediete calculetions) Mutple Choice < Prev 19 of 20 Na

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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On January 1, 2021, Tennessee Harvester Corporation issued debenture bonds that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below: Cash Effective Increase in Outstanding Payment Payment Interest Balance Balance 5,802,315 1 332,000 348,139 16,139 5,818,454 2 332,000 349,107 17,107 5,835,561 3 332,000 350,134 18,134…
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Folgers Inc. reported bond interest expense of $12,000 during 2020. The balance in Bond Interest Payable was $1,500 on 1/1/20 and $1,825 on 12/31/20. Also during 2020 $300 of Discount on Bonds Payable was amortized. What amount of cash was paid for interest during 2020?
H1.
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