On January 1st, 2021, Lemon Corporation issued $800,000 of 20 year 10% bond at 104. Interest was payable semiannually. Lemon uses straight-line amortization method and calendar year. REQUIRED: a. what amount is the interest expense

On January 1st, 2021, Lemon Corporation issued $800,000 of 20 year 10% bond at 104. Interest was payable semiannually. Lemon uses straight-line amortization method and calendar year. REQUIRED: a. what amount is the interest expense

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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Question

On January 1st, 2021, Lemon Corporation issued $800,000 of 20 year 10% bond at 104. Interest was payable semiannually. Lemon uses straight-line amortization method and calendar year.

REQUIRED:

a. what amount is the interest expense

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