Greenco

signed a

9

-year

note payable on January 1,

2016

,

of

$ 540 comma 000

.

The note requires annual principal payments each December 31 of

$ 60 comma 000

plus interest at

12

%.

The entry to record the annual payment on December 31,

2017

,

includes

___________________________________________

_________________________________

Daniels's bonds payable carry a stated interest rate of 5%, and the market rate of interest is 7%. The price of the Daniels's bonds will be at:

A.

face value.

B.

a discount.

C.

a premium.

D.

par value.

____________________________________________

__________________________________________

A bond that matures in installments at regular intervals is a

A.

term bond.

B.

terminal bond.

C.

serial bond.

D.

periodic bond.

_____________________________________________

Nicholas Smith

Antiques issued its

8

%,

10

-year

bonds payable at a price of

$ 358 comma 160

(face value is

$ 400 comma 000

).

The company uses the straight-line amortization method for the bond discount or

premium.

Interest expense for each year is