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bond interest
On October 1 of the current year a corporation sold, at par plus accrued interest, $1,000,000 of its 12% bonds, which were dated July 1 of this year. What amount of bond interest expense should the company report on its current year income statement? What I don't know how to do or am not sure is how to account for the dates here of selling the bond and when the date the bond is dated. I know I would multiply the face value times the interest, but how do I take into account the dates above?
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