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How much did the company receive from the bond issuance

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Question: On June 1, 2020, Welch Company issued 2,000 of its 10% P1,000 bonds at a price that will yield a 12% effective interest plus accrued interest. The bonds are dated April 1, 2020 and mature on April 1, 2028. Interest is payable semi-annually on April 1 and October 1.

(a) How much did the company receive from the bond issuance?

(b) How much is the interest expense for 2020?

(c) How much is the total discount amortization for 2020?

Reference no: EM132753416

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