Premium is amortized using the effective-interest method

Assignment Help Financial Accounting

Reference no: EM13775026

n January 1, 2014, The Mason Golf Course issued $600,000 of 4-year, 6% bonds payable. The market rate of interest for bonds of similar risk and maturity was 8%. The bonds pay interest each June 30 and December 31, and any discount or premium is amortized using the effective-interest method.

Requirements:

Record the following transactions:

Issuance of the bonds payable on January 1, 2014. Explanations are not required.

Payment of interest (and amortization of discount or premium if any) on June 30, 2014. Explanations are not required.

Payment of interest (and amortization of discount or premium if any) on December 31, 2014. Explanations are not required.

At what amount will The Mason Golf Course report the bonds on its balance sheet at December 31, 2014?

Reference no: EM13775026

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