aunch.ispcouea 43825 18&course; id97798 1&tcontantid; 3524694 ustep nu Question

Question

aunch.ispcouea 43825 18&course; id97798 1&tcontantid; 3524694 ustep nu Question Completion Status QUESTION 13 1 points Save Answer Westheimer Company's December 31, 2012 balance sheet included the following Bonds payable, 8%, due in 2020, net of discount $166,045 $2,833,955 Determine if the following statements are true or false and then select the correct response When the bonds were issued, the market rate of interest was less than 8% Interest expense on the bonds was $240,000 in 2012 Westheimer's cash payment for interest on these bonds is $240,000 each year False, False, False True, True, False C. True, False, True False, False, True e none of the above Click Save and Submit to save and submit. Click Save All Answers to save all answers Save All Answers Save and Submit ^ 4x 11/11/2017

Explanation / Answer

The Answer is "D"

D. False, False, True

It is Issued at Discount is an indication that market rate is more than 8%. we are providing effective rate of more

than 8% by offering bond at discount.

$240000 is the cash paid each year as interest. Total Interest expense is Cash paid plus amortisation.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.