The Designer Company issued 10-year bonds on January 1. The 6% bonds have a face value of $790,000 and pay interest every January 1 and July 1. The bonds were sold for $656,577 based on the market interest rate of 7%. Designer uses the effective interest method to amortize bond discounts and premiums. On July 1 of the first year, Designer should record interest expense (round to the nearest dollar) of a.$23,700 b.$27,650 c.$19,697 d.$22,980

The Designer Company issued 10-year bonds on January 1. The 6% bonds have a face value of $792,000 and pay interest every January 1 and July 1. The bonds were sold for $658,239 based on the market interest rate of 7%. Designer uses the effective interest method to amortize bond discounts and premiums. On July 1 of the first year, Designer should record interest expense (round to the nearest dollar) of

On January 1, Year 1, Residence Company issued bonds with a $50,000 face value. The bonds were issued at face value. They had a 20 year term and a stated rate of interest of 7%. Which of the following shows how the payoff of the bond liability will affect Residence's financial statements on December 31, Year 20 (the maturity date)? A. B. C. D. Balance Sheet Assets = Liabilities + ΝΑ = ΝΑ + NA = ΝΑ 50,000 50,000 (50,000) = (50,000) = Multiple Choice Option A Option B Option C Option D + + Equity Revenues ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ NA Income Statement Expenses = ΝΑ ΝΑ ΝΑ ΝΑ ||| || || || || = = = = Net Income ΝΑ ΝΑ ΝΑ ΝΑ Statement of Cash Flows (50,000) IA (50,000) IFA 50,000 IA (50,000) FA

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On January 1, Year 1, Twain Corporation sold $620,000 of its own 5 percent, 10-year bonds. Interest is payable annually on December 31. The bonds were sold to yield an effective interest rate of 6 percent. Twain uses the effective interest rate method. The bonds sold for $574,368. Requireda. Prepare the journal entry for the issuance of the bonds.b. Prepare the journal entry for the amortization of the bond discount and the payment of the interest at December 31, Year 1. (Assume effective interest amortization.)c. Prepare the journal entry for the amortization of the bond discount and the payment of interest on December 31, Year 1. (Assume straight-line amortization.)d. Calculate the amount of interest expense for Year 2. (Assume effective interest amortization.) e. Calculate the amount of interest expense for Year 2. (Assume straight-line amortization.)

In January of this year, Bottlebrush Company issues a $1,000,000, 6%, 8 year bond that pays semiannual interest of $31,000 receiving cash of $850,000 Required:  Journalize the first interest payment along with the amortization of the bond discount (use the straight line method)

On January 1, Martinez Inc. issued P 4,000,000, 11% bonds for P 4,260,000. The market rate of interest for these bonds is 10%. Interest is payable annually on December 31. Martinez uses the effective-interest method of amortizing bond premium. At the end of the second year, Martinez should report unamortized bond premium of a. P 246,840b. P 246,000c. P 231,400d. P 230,600

On January 1, Bramble Corp. issued 10 year, S6,000,000, 9% bonds for $6,842,830. The market rate of interest for these bonds is 79%. Interest is payable annually on December 31 (note that these bonds are ANNUAL bonds). Bramble uses the effective-interest method of amortizing bond premium. At the end of the second year, Bramble should report unamortized bond premium of Group of answer choices $722.000 $716,556 5691,933 $319,093

On January 1, the Elias Corporation issued 10% bonds with a face value of $50,000.  The bonds are sold for $46,000.  The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, ten years from now.  Elias records straight-line amortization of the bond discount.  The bond interest expense for the year ended December 31 of the first year is

On January 1, Year 1, Jones Company issued bonds with a $300,000 face value, a stated rate of interest of 7.0%, and a 5-year term to maturity. The bonds were issued at 97. Interest is payable in cash on December 31st of each year. The company amortizes bond discounts and premiums using the straight-line method. What is the amount of interest expense shown on Jones' income statement for the year ending December 31, Year 1? Multiple Choice O O O O $19,200 $21,000 $22,800 $24,600