le Edit View History Bookmarks Window Help Connect https Web Slice Gallery + new

Question

le Edit View History Bookmarks Window Help Connect https Web Slice Gallery + newconnect mheducation.com flow/connect.html?consumer id-container lt?&context; d-contextld&custom; a d Sites c- Yahoo Search Results Quiz Saved Help Save & Exit Sub On January 1 of Year 1. Congo Express Airways issued $3,100,000 of 8% bonds that pay interest semiannually on January 1 and July 1. The bond issue price is $2,850,000 and the market rate of interest for similar bonds is 9%. The bond premium or discount is being amortized at a rate of $8,333 every six months. After accruing interest at year end, the company's December 31, Year 1 balance sheet should reflect total liabilities associated with the bond issue in the amount of Multiple Choice $2,990,666. $3,333,334 $2,742.666

Explanation / Answer

Calculate total liabilities in balance sheet :

so answer is d) 2866666

Long term liabilities Bonds payable 3100000 Less: Unamortized discount (250000-8333-8333) -233334 2866666

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.