Calculation of interest rate using effective interest rate

Reference no: EM1316818

Calculation of interest rate using effective interest rate method

On January 1, 2008, the Junco Company issued $500,000 face amount 10 year, 10% stated rate bond when the market interest rates were 11%. The bonds pay interest semiannually each June 30th and December 31st and mature on December 31, 2018.

Using the effect interest rate method, determine the interest that will be recognized on the income statement on June 30th, 2008

Reference no: EM1316818

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