a. George Gershwin Co. sold $2,000,000 of 10%, 10-year bonds at 104 on January 1, 2025....

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a. George Gershwin Co. sold $2,000,000 of 10%, 10-year bonds at 104 on January 1, 2025. The bonds were dated January 1, 2025, and pay interest on July 1 and January 1. If Gershwin uses the straight-line method to amortize bond premium or discount, determine the amount of interest expense to be reported on July 1, 2025, and December 31, 2025. b. Ron Kenoly Inc. issued $600,000 of 9%, 10-year bonds on June 30, 2025, for $562,500. This price provided a yield of 10% on the bonds. Interest is payable semiannually on December 31 and June 30. If Kenoly uses the effective-interest method, determine the amount of interest expense to record if financial statements are issued on October 31, 2025. a. George Gershwin Co. sold $2,000,000 of 10%, 10-year bonds at 104 on January 1, 2025. The bonds were dated January 1, 2025, and pay interest on July 1 and January 1. If Gershwin uses the straight-line method to amortize bond premium or discount, determine the amount of interest expense to be reported on July 1, 2025, and December 31, 2025. b. Ron Kenoly Inc. issued $600,000 of 9%, 10-year bonds on June 30, 2025, for $562,500. This price provided a yield of 10% on the bonds. Interest is payable semiannually on December 31 and June 30. If Kenoly uses the effective-interest method, determine the amount of interest expense to record if financial statements are issued on October 31, 2025.

Answer rating: 100% (QA)

a To determine the amount of interest expense to be reported on July 1 2025 and December 31 2025 for George Gershwin Cos bonds we first need to calcul... View the full answer