Essay
Strathern Corporation issued ten-year term bonds dated January 1,2012,with a face value of $800,000.The face interest rate is 10 percent,and interest is payable semi-annually on June 30 and December 31.The bonds were issued for $708,400 to yield an effective annual rate of 12 percent.Use the effective interest method of amortization.Round answers to the nearest dollar.
a.Prepare entries in journal form without explanations to record the bond issue on January 1,2012,and the payments of interest and amortization on June 30 and December 31,2012.
b.Calculate the total amount to be reported as Bond Interest Expense on the income statement for the year ended 2013.
c.Calculate the carrying value of the bonds on December 31,2013.
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a. 
b.$85,795 [($708,400 + $2,504 + $2,...View Answer
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Correct Answer:
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b.$85,795 [($708,400 + $2,504 + $2,...
View Answer
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