Correct Option is $6472.30 |
Annual discount amortization = (100000-97777)/10= 222.30 |
Amount of interest expense for the first interest period = (100000*6.25%)+222.3= $6472.3 |
A company issued 10-year, 6.25% bonds with a face value of $100,000. The company received $97,777...
32. A company issued 5-year, 7% bonds with a par value of $100,000. The company received $97,947 for the bonds. Using the straight-line method, the amount of interest expense for the first semiannual interest period is: A. $3,294.70. B. $3,500.00. C. $3,705.30. D. $7,000.00. E. $7,410.60.
A company issued 5-year, 9% bonds with a par value of $98,000. The company received $95,947 for the bonds. Using the straight-line method, the amount of interest expense for the first semiannual interest period is: Multiple Choice Ο $9,230.60. 592οσο. Ο $4,410.00. Ο $8,820.00. Ο Ο $4.20470. Ο $4,615.30.
A company issues 9%, 4-year bonds with a par value of $160,000 on January 1 at a price of $165,386, when the market rate of interest was 8%. The bonds pay interest semiannually. The amount of each semiannual interest payment is: Multiple Choice $14,400. $0. $12,800. $7,200. $6,400 2) A company issued 5-year, 5% bonds with a par value of $91,000. The company received $88,947 for the bonds. Using the straight-line method, the amount of interest expense for the first...
On January 31, 2016 Company M issued 10 year, 4% bonds with a face value of $100,000. The bonds were issued at 94 and pay interest on January 31 and July 31. Company M amortizes their bonds by the straight-line method. Record (a) issuance of the bonds on January 31, (b) the semi-annual interest payment and discount amortization on July 31, and the interest accrual and discount amortization on December 31.
A company issued 5 year, 7% bonds with a par value of $900,000. The market rate when the bonds were issued was 6.5%. The company received 5903000 cho the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest periodis: Multiple Choice Ο Ο $63,000 Ο Ο $62.100. Ο S31500 Ο () $30600 Ο ( 432,400 < Prev 9 of 10 # Next >
A company issued 5-year, 7% bonds with a par value of $1,100,000. The market rate when the bonds were issued was 6.5%. The company received $1,123,162 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is:
Question 18 Blossom Company received proceeds of $1025000 on 10-year, 8% bonds issued on January 1, 2019. The bonds had a face value of $1088000, pay interes annually on December 31, and have a call price of 102. Blossom uses the straight-line method of amortization. What is the amount of interest expense Blossom will show with relation to these bonds for the year ended December 31, 20207 O $82000 $93340 $80740 $87040
Victor Company issued bonds with a $725,000 face value and a 6% stated rate of interest on January 1 Year 1. The bonds carried a 5-year! term and sold for 95. Victor uses the straight-line method of amortization. Interest is payable on December 31 of each year, The amount of interest expense appearing on the December 31, Year 3 income statement would be: Multiple Choice Ο Ο Ο Ο Riley Company borrowed $34,000 on April 1. Year 1 from the...
A company issued 5 year, 7% bonds with a par value of $800,000. The market rate when the bonds were issued was 6.5%. The company received $816,845 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is: ο 456,00000 ο $28,000.00 ο $29,07180. ο $26,315.50. ο $53,091.80.
On January 1, 2018, Baltimore Company issued $150,000 face value, 7%, 10-year bonds at 102. Interest is paid annually on January 1. Baltimore uses the straight-line method for amortization. Use this information to determine the dollar value of the interest expense for the 2018 fiscal year. Round your answer to the nearest whole dollar.