On January 1 of the current year, the Barton Corporation issued 10% bonds with a face value of $79,000. The bonds are sold for $76,630. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, five years from now. Barton records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 is
a.$7,900
b.$8,374
c.$658
d.$2,370
Bond interest payable = 79,000*10%= 7900
Amortization of bond discount
= (79,000-76,630)/5 = 474
Bond interest expense for the year ended Dec 31
= 7900+474
= 8374
On January 1 of the current year, the Barton Corporation issued 10% bonds with a face...
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