The Melon Company issues $500,000 of 8%, 10-year bonds at 104 on March 31, Year 1. The bonds pay interest on March 31 and September 30. Assume that the company uses the straight-line method for amortization. Calculate the net balance that will be reported for the bonds on the September 30, Year 1 balance sheet. (Round your intermediate answers to the nearest dollar.) O $500,000 O $519,000 O $520,000 O $521,000
The Melon Company issues $500,000 of 8%, 10-year bonds at 104 on March 31, Year 1. The bonds pay interest on March 31 and September 30. Assume that the company uses the straight-line method for amortization. Calculate the net balance that will be reported for the bonds on the September 30, Year 1 balance sheet. (Round your intermediate answers to the nearest dollar.) O $500,000 O $519,000 O $520,000 O $521,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The Melon Company issues $500,000 of 8%, 10-year bonds at 104 on
March 31, Year 1. The bonds pay interest on March 31 and September
30. Assume that the company uses the straight-line method for
amortization. Calculate the net balance that will be reported for the
bonds on the September 30, Year 1 balance sheet. (Round your
intermediate answers to the nearest dollar.)
O $500,000
O $519,000
O $520,000
O $521,000
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