Report bond interest expense problem

Reference no: EM13155687

On January 1, 2009, Legion Company sold $200,000 of 10% ten-year bonds. Interest is payable semiannually on June 30 and December 31. The bonds were sold for $177,000, priced to yield 12%. Legion records interest at the effective rate. Legion should report bond interest expense for the six months ended June 30, 2009, in the amount of:

A. $ 8,850

B. $10,000

C. $10,620

D. $12,000

Reference no: EM13155687

Questions Cloud

Compute the proper earnings per share : Earnings per share.Santana Corporation has 400,000 shares of common stock outstanding throughout 2010. In addition, the corporation has 5,000, 20-year, 7% bonds issued at par in 2008. Compute the proper earnings per share for 2010.

Substantive interpretation of unstandardized regression : Write a substantive interpretation of the following unstandardized regression equation based on a sample of 743 city residents, where Y is a 10-point scale measuring.

The area under the standard normal probability : The area under the standard normal probability distribution is?b. the area under the standard normal probability distribution is? c. the area under the standard normal probability distribution is?

Budgeted manufacturing overhead rate : Determine the budgeted manufacturing overhead rate for each department. Prepare the necessary journal entries to summarize the March transactions for Department 100.

Report bond interest expense problem : The bonds were sold for $177,000, priced to yield 12%. Legion records interest at the effective rate. Legion should report bond interest expense for the six months ended June 30, 2009, in the amount of:

What mass of magnesium nitrate do you need : prepare 250ml of a .5 mol/L aqueous solution of magnesium nitrae, Mg(N3)2. what mass of magnesium nitrate do you need?

Records reveal pretax financial accounting income : "Black Kitty Company recorded certain revenues of $10,000 and $20,000 on its books in 2007 and 2008, respectively. However, these revenues were not subject to income taxation until 2009. Company records reveal pretax financial accounting income an..

Explain briefly why profit is still likely to be lower : Explain briefly why TOTAL profit (profit from entire sales) is still likely to be lower with this pricing scheme than with perfect price discrimination, despite charging a fixed fee equal to the entire Consumer Surplus of a typical consumer?

Amount torrie repay at the end of third year : Torrie Company borrowed $50,000 on January 2, 2007. This amount plus accrued interest of 5% compounded annually will be repaid at the end of 3 years. What amount will Torrie repay at the end of the third year?

User Account

All Pages