Reference no: EM13752098
On February 28, 2009, $5,000,000 of 6%, 10-year bonds payable, dated December 31, 2008, are issued. Interest on the bonds is payable semiannually each June 30 and December 31. If the total amount received (including accrued interest) by the issuing corporation is $5,060,000, which of the following is correct?
The bonds were issued at a premium.
The amount of cash paid to bondholders on the next interest date, June 30, 2009, is $300,000.
The amount of cash paid to bondholders on the next interest date, June 30, 2009, is $50,000.
The bonds were issued at a discount.
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