Question

A company issued 10-year, 5.75% bonds with a face value of $100,000. The company received $97,857...

A company issued 10-year, 5.75% bonds with a face value of $100,000. The company received $97,857 for the bonds. Using the straight-line method of amortization, the amount of interest expense for the first annual interest period is:

Multiple Choice

  • $5,535.70

  • $5,750.00

  • $2,143.00

  • $5,964.30

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A company issued 10-year, 7.00% bonds with a face value of $100,000. The company received $97,947...
A company issued 10-year, 7.00% bonds with a face value of $100,000. The company received $97,947 for the bonds. Using the straight-line method of amortization, the amount of interest expense for the first interest period is:
A company issued 5-year, 7% bonds with a par value of $100,000. The company received $97,947...
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 a)3705.3 b)3294.7 c)7000.0 d)7410.6
A company issued five-year, 7% bonds with a par value of $150,000. The market rate when...
A company issued five-year, 7% bonds with a par value of $150,000. The market rate when the bonds were issued was 6.5%. The company received $170,550 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is:
On January 31, 2016 Muscle Sports Cars issued 10-year, 4% bonds with a face value of...
On January 31, 2016 Muscle Sports Cars 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 June 30. Muscle 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 June 30, and (c) the interest accrual and discount amortization on December 31.
On January​ 1, Year​ 1, assume Smart Touch Learning issued​ 10-year, $100,000 bonds at 95% with...
On January​ 1, Year​ 1, assume Smart Touch Learning issued​ 10-year, $100,000 bonds at 95% with an interest rate of 6% paid semi-annually. Using the​ straight-line amortization​ method, what is the amount of interest expense recorded each interest​ period? A. 3,000 B.3,250 C. 6,000 D. 6,500
Diaz Company issued bonds with a $98,000 face value on January 1, Year 1. The bonds...
Diaz Company issued bonds with a $98,000 face value on January 1, Year 1. The bonds had a 6 percent stated rate of interest and a 10-year term. Interest is paid in cash annually, beginning December 31, Year 1. The bonds were issued at 97. The straight-line method is used for amortization. b. Determine the carrying value (face value less discount or plus premium) of the bond liability as of December 31, Year 1. c. Determine the amount of interest...
A company issued 6-year, 8% bonds with a par value of $350,000. The market rate when...
A company issued 6-year, 8% bonds with a par value of $350,000. The market rate when the bonds were issued was 7.5%. The company received $353,500 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is: Multiple Choice $27,708. $13,708. $14,000. $28,000. $14,292. A corporation reports the following year-end balance sheet data. The company's working capital equals: Cash $ 44,000 Current liabilities $ 79,000 Accounts receivable 59,000 Long-term liabilities...
Garland Company received proceeds of $178600 on 10-year, 6% bonds issued on January 1, 2018. The...
Garland Company received proceeds of $178600 on 10-year, 6% bonds issued on January 1, 2018. The bonds had a face value of $190000, pay interest annually on January 1, and have a call price of 101. Garland uses the straight-line method of amortization. What is the carrying value of the bonds on January 1, 2020? $179740 $190000 $180880 $187492
Crane Company received proceeds of $799500 on 10-year, 9% bonds issued on January 1, 2019. The...
Crane Company received proceeds of $799500 on 10-year, 9% bonds issued on January 1, 2019. The bonds had a face value of $848000, pay interest annually on December 31, and have a call price of 103. Crane uses the straight-line method of amortization. What is the carrying value of the bonds on January 1, 2021? $809200 $848000 $838300 $804350
On July 1, Year 1, Danzer Industries Inc. issued $2,200,000 of 9-year, 10% bonds at a...
On July 1, Year 1, Danzer Industries Inc. issued $2,200,000 of 9-year, 10% bonds at a market (effective) interest rate of 11%, receiving cash of $2,076,302. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1. If an amount box does not require an...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT