Question:

Accouting Question multiple choice check?

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the 10% bonds payable of Klein company had a net carrying amount of $570,000 on Dec 31, 2006. the bonds, which had a face value of $600,000 were issued at a discount to yeild 12%. the amortization of the bond discount was recorded under the effective interest method. interest was paid on January 1 and July 1 of each year. on July 2, 2007 was amde as scheduled. what is the loss that klein should record on the early retirement of the bonds on July 2, 2007. ignore taxes.

$12,000

$37,800

$33,600

$42,000

my answer: 37,800

thanks for any help!

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  1. Is this a take home test your trying to cheat on?

    EDIT: Oh cmon i was on this site 3 weeks ago puting up a ton of questions just like this one for my take home so don't BS me...I'm taking accounting 2 also... Your Q is in the long-term liabilities chapter....

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