The following data relate to a $100,000,000, 12% bond issue for a selected semiannual interest pe…

the following data relate to a $100,000,000, 12% bond issue for a selected semiannual interest period:

Bond carrying amount at beginning of period………………………………………$112, 085,373

Interest paid during period……………………………………………………………………..6,000,000

Interest expense allocable to the period…………………………………………………..5,623,113

(a) Were the bonds issued at a discount or at a premium? (b) What is the unamortized amount of the discount or premium account at the beginning of the period? (c) What account was debited to amortize the discount or premium?

 

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