1. Dakota Company issued $700,000 6%, 5-year bonds at 98, with interest paid annually. Assuming straight-line amortization, what is the book value of the bonds after one year?

2, John Company received earnings of $188,000 on 6% 10-year bonds issued on January 1, 2013. The bonds had a face value of $200,000 and paid interest semiannually on June 30 and December 31. John uses the straight line depreciation method. What is the amount of interest expense that John will show in connection with these bonds for the year ended December 31, 2014?

Answer rating: 100% (QA)

1 To calculate the book value of Dakota Companys bonds after one year we need to consider the bo... View the full answer