1.Kaselitz Corp. issued a $100,000, 8%, 5-year bond on 1/1/16. Interest is paid each June 30 and...
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Question:
1.Kaselitz Corp. issued a $100,000, 8%, 5-year bond on 1/1/16. Interest is paid each June 30 and December 31. The bond sold for $104,158 to yield 7%. The effective interest method is used.
Cash interest paid to the bondholders in 2016 is:
Select one:
a. $7,291
b. $8,333
c. $7,365
d. $7,000
e. $8,000
2.
Kaselitz Corp. issued a $100,000, 9%, 5-year bond on 1/1/16. Interest is paid each June 30 and December 31. The bond sold for $104,055 to yield 8%. The effective interest method is used.
The Premium on Bonds Payable amortized in 2016 is:
Select one:
a. $811
b. $336
c. $689
d. $676
e. $348
Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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