On July 1, 2018, Dingo Corporation issues $1,000,000 of 5-year bonds, 4% bonds that pay interest semi-annually. The selling price was for $914,698 when the market rate of interest was 6%. Dingo Corporation uses the effective-interest method of amortization. Interest is paid each June 30 and December 31. The entry to record the first semi-annual interest payment on December 31, 2018, will include a:

Question

On July 1, 2018, Dingo Corporation issues $1,000,000 of 5-year bonds, 4% bonds that pay interest semi-annually. The selling price was  for $914,698 when the market rate of interest was 6%. Dingo Corporation uses the effective-interest method of amortization. Interest is paid each June 30 and December 31. The entry to record the first semi-annual interest payment on December 31, 2018, will include a:

Accepted Answer

debit to Interest Expense of $27,441

Answer

credit to Bonds Payable for $27,441

Answer

credit to Interest Expense for $20,000

Answer

credit to Bonds Payable for $20,000

Crowdly

On July 1, 2018, Dingo Corporation issues $1,000,000 of 5-year bonds, 4% bonds t...

Want instant access to all verified answers on moodle.uleth.ca?