1. On January 1 of the current year, Barton Corporation issued 10% bonds with a face value...

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Question:

1. On January 1 of the current year, Barton Corporation issued 10% bonds with a face value of $119,000. The bonds are sold for $113,050. The bonds pay interest semiannually on June 30 and December 31, and the maturity date is December 31, five years from now. Barton records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 is

a. $13,090

b. $595

c. $13,685

d. $5,950

2. If $664,000 of 7% bonds are issued at 94, the amount of cash received from the sale is

a. $664,000

b. $624,160

c. $710,480

d. $617,520

3. On January 1, Elias Corporation issued 7% bonds with a face value of $85,000. The bonds are sold for $82,450. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, 10 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

a. $6,205

b. $496

c. $2,550

d. $5,950

4. Franklin Corporation issues $81,000, 10%, five-year bonds on January 1 for $84,600. Interest is paid semiannually on January 1 and July 1. If Franklin uses the straight-line method of amortization of bond premium, the amount of bond interest expense to be recognized on July 1 is

a. $3,240

b. $6,480

c. $3,690

d. $3,600