1) On November 1, 2017, Cleveland Services issued $305,000 of five-year bonds with a stated rate of 12%. The bonds were issued at par, and Cleveland makes semiannual payments on April 30 and October 31. On December 31, 2017, Cleveland made an adjusting entry to accrue interest at year-end. No further entries were made until April 30, 2018, when the first payment was made. What amount of interest expense was recorded for the period of January 1 to April 30, 2019?

A) $12,200

B) $36,600

C) $18,300

D) $29,280

2) Marygrove Glassware Company issues $1,014,000 of 10%, 10-year bonds at 97 on February 28, 2017. The bond pays interest on February 28 and August 31. On August 31, 2017, how much cash did Marygrove pay to the bondholders?

A) $51,968

B) $50,700

C) $101,400

D) $49,432

3) Complete table:

Bond's Stated Interest Rate	Market Interes Rate	Will the issue price of Bonds Payable be at a discount, premium, or face value?
6%	8%
10%	9%
6%	6%

Answer rating: 100% (QA)

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