Wendy Company received proceeds of $188,000 on 10-year, 6% bonds issued on January 1, 2019. The bonds had a face value of $200,000, pay interest annually on December 31, and have a call price of 101. Wendy uses the straight-line method of amortization. What is the amount of interest expense Wendy will show with relation to these bonds for the year ended December 31, 2020? $13,200 $12,000 $10,800 $11,200

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Wendy Company received proceeds of $188,000 on 10-year, 6% bonds issued on January 1, 2019. The bonds had a face value of $200,000, pay interest annually on December 31, and have a call price of 101. Wendy uses the straight-line method of amortization.

What is the amount of interest expense Wendy will show with relation to these bonds for the year ended December 31, 2020?

$13,200

$12,000

$10,800

$11,200

 

 

 

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