Business, 21.03.2020 00:00 marivi3cazares
On July 1, year 7, Dean Co. issued, at a premium, bonds with a due date of July 1, year 12. Dean incorrectly used the straight-line method instead of the effective interest method to amortize the premium. How were the following amounts affected by the error at June 30, year 12?
Bond carrying Retained
amount earnings
A. Overstated --- Understated
B. Understated --- Overstated
C. Overstated No effect
D. No effect No effect
Answers: 1
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On July 1, year 7, Dean Co. issued, at a premium, bonds with a due date of July 1, year 12. Dean inc...
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