On January 1, Blossom Inc. issued $7300000, 9% bonds for $7774500. The market rate of interest for these bonds is 8%. Interest is payable annually on December 31. Blossom uses the effective-interest method of amortizing bond premium. At the end of the first year, Blossom should report unamortized bond premium of $328500 $403908 O $440354 $439460

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...
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On January 1, Blossom Inc. issued $7300000, 9% bonds for $7774500. The market rate of interest for these
bonds is 8%. Interest is payable annually on December 31. Blossom uses the effective-interest method of
amortizing bond premium. At the end of the first year, Blossom should report unamortized bond premium of
$328500
$403908
$440354
$439460
Transcribed Image Text:On January 1, Blossom Inc. issued $7300000, 9% bonds for $7774500. The market rate of interest for these bonds is 8%. Interest is payable annually on December 31. Blossom uses the effective-interest method of amortizing bond premium. At the end of the first year, Blossom should report unamortized bond premium of $328500 $403908 $440354 $439460
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