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28 January, 14:34

Turner Company issued $300,000 of 6%, 5-year bonds at 98.

Assuming straight-line amortization and annual interest payments, how much bond interest expense is recorded on the next interest date?

a. $18,000

b. $9,000

c. $18,600

d. $19,200

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Answers (1)
  1. 28 January, 17:49
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    d. $19,200

    Explanation:

    Turner Company issued $300,000 of 6%, 5-year bonds at 98. Assuming straight-line amortization and annual interest payments, how much bond interest expense is recorded on the next interest date?.

    = ($300,000 x 6% plus $6,000/5)

    Therefore the correct answer is d) $19,200
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