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  • Linz Company Sold 250 000 of 9 5 Percent 20 Year Bonds On

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    trilocksp Singh
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    Linz Company sold $250,000 of 9.5% 20-year bonds on April 1, 2014 at a price of 106. The bonds pay semiannual interest on March 31 and September 30. Using the effective interest method, the summary calculates cash received from the bond sale, the bonds payable amount, interest paid, amortization, and interest expense over the first year.

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    Linz Company sold $250,000 of 9.5% 20-year bonds on April 1, 2014 at a price of 106. The bonds pay semiannual interest on March 31 and September 30. Using the effective interest method, the summary calculates cash received from the bond sale, the bonds payable amount, interest paid, amortization, and interest expense over the first year.

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    © All Rights Reserved
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    4 views1 page

    Linz Company Sold 250 000 of 9 5 Percent 20 Year Bonds On

    Uploaded by

    trilocksp Singh
    Linz Company sold $250,000 of 9.5% 20-year bonds on April 1, 2014 at a price of 106. The bonds pay semiannual interest on March 31 and September 30. Using the effective interest method, the summary calculates cash received from the bond sale, the bonds payable amount, interest paid, amortization, and interest expense over the first year.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    Linz Company sold 250 000 of 9 5 percent 20 year bonds on

    Linz Company sold $250,000 of 9.5 percent, 20-year bonds on April 1, 2014, at 106. The
    semiannual interest payment dates are March 31 and September 30. The market interest rate is
    8.9 percent. The company’s fiscal year ends September 30. Use the effective interest method
    to calculate the amortization. (Round to the nearest cent.)1. With regard to the bond issue on
    April 1, 2014:a. How much cash is received?b. How much is Bonds Payable?c. What is the
    difference between a and b called and how much is it?2. With regard to the bond interest
    payment on September 30, 2014:a. How much cash is paid in interest?b. How much is the
    amortization?c. How much is interest expense?3. With regard to the bond interest payment on
    March 31, 2015:a. How much cash is paid in interest?b. How much is the amortization?c. How
    much is interest expense?View Solution:
    Linz Company sold 250 000 of 9 5 percent 20 year bonds on
    SOLUTION-- http://solutiondone.online/downloads/linz-company-
    sold-250-000-of-9-5-percent-20-year-bonds-on/

    Unlock answers here solutiondone.online


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