On January 1, 2013, Dawson Corporation issued debenture bonds
Question # 00151313
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Updated on: 12/13/2015 11:47 AM Due on: 01/12/2016
1. On January 1, 2013, Dawson Corporation issued debenture bonds that pay interest semiannually on June 30 and December 31. The bonds had a face value of $8M and sold for $6,627,273. The state rate of interest on the bonds is 8% and the effective interest is 10%.
Required:
- What amount of interest expense will Dawson report in its income statement for the year ended December 31, 2013 (related to the bonds).
- What amount(s) related to the bonds will Dawson report in its balance sheet at December 31, 2009.
- What amount of interest expense will Dawson report in its income statement for the year ended December 31, 2014 (related to the bonds).
- What amount(s) related to the bonds will Dawson report in its balance sheet at December 31, 2014.
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Rating:
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Solution: On January 1, 2013, Dawson Corporation issued debenture bonds