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On 1 January 2013, Ouyang Inc. issues $1,000,000 face value, 10-year bonds with annual interest rate...

On 1 January 2013, Ouyang Inc. issues $1,000,000 face value, 10-year bonds with annual interest rate of 5% to be paid each year on December 31. The market interest rate is 5.5%. Using the effective interest rate method of amortization, Ouyang Inc. should record when it closes its annual book on Dec 31, 2013 (Round your number to integers):

a carrying amount of 962,312 on Dec 31, 2013;
an interest expense of 53,088 on Dec 31, 2013;
a cash disbursement of 52,927 on Dec 31, 2013;
a carrying amount of 965,239 on Dec 31, 2013;
an amortization of premium.

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jeff jeffy answered 2 years ago
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