A company issues $25300000, 5.8%, 20-year bonds to yield 6% on January 1, 2017. Interest is...

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A company issues $25300000, 5.8%, 20-year bonds to yield 6% on January 1, 2017. Interest is...

A company issues $25300000, 5.8%, 20-year bonds to yield 6% on January 1, 2017. Interest is paid on June 30 and December 31. The proceeds from the bonds are $24715190. Using effective-interest amortization, how much interest expense will be recognized in 2017?

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Answer 1

Answer #1

1483144 Answer : Interest Expenses To be recognised (741456+741688) Cash interest = 25300000*5.8%*6./12 733700.0 Interest Exp

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