Maine Corporation issued ten-year, $50,000, 8% bonds on July 1, 2013. The bonds pay interest semiannually. Maine uses the straight line method to amortize bond premium and discount. The company made the following entry relating to the first interest payment made on December 31, 2013: Required:
How much cash did Maine receive for the issuance of the bond on July 1, 2013?

Question

Maine Corporation issued ten-year, $50,000, 8% bonds on July 1, 2013. The bonds pay interest semiannually. Maine uses the straight line method to amortize bond premium and discount. The company made the following entry relating to the first interest payment made on December 31, 2013:  Required:
How much cash did Maine receive for the issuance of the bond on July 1, 2013?

Quizplus · Accepted Answer

The Answer of Maine Corporation issued ten-year, $50,000, 8% bonds on July 1, 2013. The bonds pay interest semiannually. Maine uses the straight line method to amortize bond premium and discount. The company made the following entry relating to the first interest payment made on December 31, 2013:  Required:
How much cash did Maine receive for the issuance of the bond on July 1, 2013?

Maine Corporation Issued Ten-Year, $50,000, 8% Bonds on July 1