Problem 1

problem 2)

Problem 3)

art 2 of 2 On January 1, Year 1 Residence Company issued bonds with a $50,000 face value. The bonds were issued at 96 resulting in a 4% discount. They had a 20 year term and a stated rate of interest of 7%. Based on this information, the carrying value of the bond liability on January 1 Year 6 is $50,000 $48.000. $48,500 $47,500 rt 2 of 2 On January 1, Year 1 Residence Company issued bonds with a $50,000 face value. The bonds were issued at 104 resulting in a 4% premium. They had a 20 year term and a stated rate of interest of 7% The company amortizes the premium on a straight-line basis. Which of the following shows how the recognition of interest expense will affect Residence's financial statements on December 31, Year 1? Income Statement Balance Sheet Carrying Value Bond Liability NA (180) + - + Assets (3,400) (3,500) (3,500) (3,400) A. B. + Equity (3,480) (3,400) (3,500) (3,500) Rev. NA NA NA NA Exp. 3,400 3,400 3,500 3,400 Net Inc. (3,400) (3,400) (3,500) (3,400) Statement of Cash Flows (3,480) OA (3,500) OA (3,500) OA (3,400) OA NA + D. 100 + Option A Option B Optionc Option D On January 1 Year 1, Barnes Company issued a $100.000 installment note. The note had a 10-year term and an 8 percent interest rate. Barnes agreed to repay the principal and interest in 10 annual payments of $14.903 at the end of each year. The amount of interest expense shown on the Year 2 income statement is (round your answer to two decimal places) rt 2 of 4 $14.903 ints $7,455 eBook Print $8,000 $7,448