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How much interest expenses should be recorded on January

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Reference no: EM133015632

Question - On January 1, 2014 Abc company issued a $650000, 10%, 8 year bond for 527193.57 since the effective interest rate was 14% . Interest is payable on January 1st and July 1st. Abc company uses the effective -interest method to amortize all premiums and discounts.

Required - Based on the above given information, answer the following question

1. What is the bond's carrying value as 31/12/2014?

2. How much interest expenses should be recorded on January 1st, 2015?

3. How much interest expenses should be recorded on July 1st, 2015?

4. At what value should the bond payable account be presented in the non-current liability?

Reference no: EM133015632

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