AC 116 MIDTERM QUESTIONS AND ANSWERS
The 15% bonds have a face value of $100,000 and pay interest every January 1 and July 1. The bonds were sold for $117,205 based on the market interest rate of 12%. Raymore uses the effective-interest method to amortize bond discounts and premiums. On July 1, 2007, Raymore should record interest expense (round to the nearest dollar) of ................
................
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