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Crystal Glassware Company Issues $1,042,000 of Its 14%,10-Year Bonds at 97

question 160

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Crystal Glassware Company issues $1,042,000 of its 14%,10-year bonds at 97 on February 28,2019.The bonds pay interest on February 28 and August 31.Assume that Crystal uses the straight-line method for amortization.What net amount will be reported for the bonds on the August 31,2019 balance sheet?

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Definitions:

Volume Variance

An assessment of the impact of production or sales volume differences on a company's revenue or expenses, relative to budgeted amounts.

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