Solution-Compute the cash received from issuing the bonds

Compute the cash received from issuing the bonds

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Question - The long-term liabilities section of Guyton Enterprises follows. The bonds outstanding on January 1, 20-1, have an annual coupon rate of 4% and had been issued several years ago at a price to yield 5% per year. The discount is amortized using the effective interest method. On December 31, 20-1, $900,000, 5% bonds were issued at a price to yield 6%.

Long-Term Liabilities December 31, 20-1 January 1, 20-1 Bonds payable $1,900,000 $1,000,000 Discount on bonds payable (202,461) (104,651) Total long-term liabilities $1,697,539 $895,349

Required - Compute the cash received from issuing the bonds on December 31, 20-1. Round your answer to the nearest whole dollar.

Reference no: EM132560541

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Compute the cash received from issuing the bonds

Reference no: EM132560541

Reference no: EM132560541

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