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Manal Elkhoshkhany, Bachelor's Degree
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# Renfro Company issued \$500,000 of 8%, 10-year bonds at 102.

### Customer Question

Customer: Renfro Company issued \$500,000 of 8%, 10-year bonds at 102. Interest is paid annually, and the straight-line method is used for amortization. Assume that the market rate for similar investments is 7%. The bonds are issued on the date of the bonds. (SHOW ALL WORK)What amount was received for the bonds?How much interest is paid each interest period?What is the premium amortization for the first interest period?How much bond interest expense is recorded on the first interest date?What is the carrying value of the bonds after the first interest date?Read more: http://www.justanswer.com/single-problem/6eyux-7-points-15-0-renfro-company-issued-500-000.html#ixzz3uQNs5Rzl
JA: Thanks. Can you give me any more details about your issue?
Customer: Renfro Company issued \$500,000 of 8%, 10-year bonds at 102. Interest is paid annually, and the straight-line method is used for amortization. Assume that the market rate for similar investments is 7%. The bonds are issued on the date of the bonds. (SHOW ALL WORK)What amount was received for the bonds?How much interest is paid each interest period?What is the premium amortization for the first interest period?How much bond interest expense is recorded on the first interest date?What is the carrying value of the bonds after the first interest date?
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Submitted: 11 months ago.
Category: Single Problem
Expert:  Manal Elkhoshkhany replied 11 months ago.

Hello

Thank you

Expert:  Manal Elkhoshkhany replied 11 months ago.

Hello again,

I am afraid I might not be online when you log back in so I will post the solution here. Please click on the following link to download the solution:

https://app.box.com/s/svgby9tbxlse5h30sfwd3mpnnsglap75

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