sgreen29
Apr 19, 2011, 11:56 AM
Randell Company issues 7%, 10-year bonds with a par value of $150,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 8%, which implies a selling price of 93¼. The straight-line method is used to allocate interest expense.
What is the amount of bond interest expense recorded on the first interest payment date?
What is the amount of bond interest expense recorded on the first interest payment date?