How do i calculate this problem and enter it in a journal entryA company sold \$750,000 of bonds for \$725,000 in January. The bonds mature in 10 years and pay interest annually on December 31. If the company properly recorded the payment of interest and amortization of the discount using the effective interest method at the end of the first year the carrying value will be:
Updated 8/1/2023 12:09:23 AM
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User: How do i calculate this problem and enter it in a journal entryA company sold \$750,000 of bonds for \$725,000 in January. The bonds mature in 10 years and pay interest annually on December 31. If the company properly recorded the payment of interest and amortization of the discount using the effective interest method at the end of the first year the carrying value will be:

Weegy:

Updated 8/1/2023 12:09:23 AM
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1. Calculate annual interest payment: \$750,000 (face value) * interest rate (as a decimal).

2. Calculate annual amortization of the discount: \$725,000 (cash received) - (annual interest payment).

3. Carrying value at the end of the first year = Carrying value at the beginning of the year - Annual amortization of the discount.

Questions asked by the same visitor
Please how do i calculate this problem and enter it in a journal entry: If a company issues 10-year, 8%, \$100,000 bonds paying interest on an annual basis, at a \$5,200 premium, the annual interest expense on the bonds will be:
Weegy: 100,000*52,00= 52,000,0000 User: The amount suppose to be less than the amount of interest payments to bondholders each year. (More)
Question
Updated 5/25/2023 12:02:49 AM
Stocks Value and Bond: The amount suppose to be less than the amount of interest payments to bondholders each year.
39,352,220
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