Solution-Compute the cash received from issuing the bonds

Compute the cash received from issuing the bonds on December

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Reference no: EM132724366

Problem - 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.

Reference no: EM132724366

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Compute the cash received from issuing the bonds on December

Reference no: EM132724366

Reference no: EM132724366

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