Can I please get help for the following question?
A company issued a $3.9M face amount bond on June 1st, 2016 at 6% for 10 years. These bonds pay interest on an annual basis on May 31st each year.
Calculate the interest expense that the company will show with respect to these bonds in its income statements for the year ending Sept 30, 2016 assuming that the discount of $362,000 is amortized on a straight-line basis. I'm trying to get the following numbers:
Accrued interest payable:
Thank you very much,
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