Is this a Typo or am I misunderstanding something?

  • Creator
    Topic
  • April 22, 2015 at 10:29 pm #193485
    Oimie
    Member

    Question# 473 on Ninja FAR MCQ

    On January 1, 20X2, Oak Co. issued 400 of its 8%, $1,000 bonds at 97 plus accrued interest. The bonds are dated October 1, 20X1, and mature on October 1, 20X1. Interest is payable semiannually on April 1 and October 1. Accrued interest for the period October 1, 20X1, to January 1, 20X2, amounted to $8,000. On January 1, 20X2, what amount should Oak report as bonds payable, net of discount?

    The bonds were dated Oct 1. 20X1 AND mature on Oct 1. 20X1? And they were issued on Jan 1. 20X2? Is this a typo or am I misunderstanding something?

    FAR 85 June 2015
    AUD 80 Nov 2015
    REG 83 Nov 2015
    BEC 79 Feb 2016

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