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Ridgetop Company Issued the Following Ten-Year Bonds on January 1,2019

Question 48

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Ridgetop Company issued the following ten-year bonds on January 1,2019: $100,000 maturity value,5% interest payable annually on each December 31.The bonds were dated January 1,2019 and the accounting period ends December 31.The bonds were issued for $93,000.Ridgetop uses the effective-interest method for amortization.The amortization for 2019 was $580.
A.
Ridgetop Company issued the following ten-year bonds on January 1,2019: $100,000 maturity value,5% interest payable annually on each December 31.The bonds were dated January 1,2019 and the accounting period ends December 31.The bonds were issued for $93,000.Ridgetop uses the effective-interest method for amortization.The amortization for 2019 was $580. A.

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