Greco Co issued ten-year term bonds on January 1, 20x5, with a face value of $1,600,000. The face interest rate is 6 percent and interest is payable semi-annually on June 30 and December 31. The bonds were issued for $1,381,920 to yield an effective annual rate of 8 percent. The effective interest method of amortization is to be used. The carrying value of the bonds payable on the December 31,
20x5, balance sheet date should be
A) $1,392,824.
B) $1,396,472.
C) $1,396,764.
D) $1,381,920.
C
You might also like to view...
When another customer complains about the hair salon where Georgeanna is a loyal customer, she defends it because she feels responsible for the continued success of the hair salon
This behavior suggests she has reached the ________ rung of the loyalty ladder. A) word of mouth/buzz B) repeat purchase C) satisfaction D) evangelism E) ownership
Which of the following accounts would NOT be affected if a company failed to report returns of merchandise sold?
a. Sales returns b. Sales allowances c. Cost of goods sold d. Inventory
The view of managers as omnipotent is consistent with the stereotypical picture of the take-charge business executive who can overcome any obstacle in carrying out the organization's objectives.
Answer the following statement true (T) or false (F)
Baxsen, Inc wanted to acquire the common stock of the Acme Corporation and hired Clark to audit the financial statements of Acme. Clark failed to discover a large embezzlement by Acme's chief financial officer. In a common law action by Baxsen against Clark, Baxsen must at a minimum prove:
A) ordinary negligence on Clark's part. B) gross negligence on Clark's part. C) fraud on Clark's part. D) scienter on Clark's part.