On October 1, Year 1, Seoma Co. issued 10%, $500,000 face amount, 5-year bonds maturing on January 1, Year 6, for $527,500. The interest is payable annually on January 1. To issue the bonds, Seoma paid legal and consulting fees of $15,300. Seoma amortizes any discount or premium on bonds using the effective interest method and debt issue costs using the straight-line method.
Answers
Answered by
0
Answer:
On October 1, Year 1, Seoma Co. issued 10%, $500,000 face amount, 5-year bonds maturing on January 1, Year 6, for $527,500. The interest is payable annually on January 1. To issue the bonds, Seoma paid legal and consulting fees of $15,300. Seoma amortizes any discount or premium on bonds using the effective interest method and debt issue costs using the straight-line method.
Similar questions