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  3. 1. 2. 3. on january 1, a company issued...

1. 2. 3. On January 1, a company issued...

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Accounting

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On January 1, a company issued and sold a $400,000,7%,10-year bond payable, and received proceeds of $396,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The carrying value of the bonds immediately after the second interest payment is: Muliple Cholce $400,000 $399800 $396,400 $395.800 Multiple Choice $3,217,563. $3,340,063. $3,782,437 $3,780,000 $3,902,500 On July 1, Shady Creek Resort borrowed $250,000 cash by signing a 10-year, 8% instaliment note requiring equal payments each June 30 of $37,258. What amount of interest expense will be included in the first annual payment? Muitiple Choice $20,000 537,258 $25,000 $17258. 522742 On January 1 of Year 1. Congo Express Airways issued $3,500,000 of 7% bonds that pay interest semiannually on January 1 and July 1 . The bond issue price is $3,197,389 and the market rate of interest for similar bonds is 8%. The bond premium or discount is being amortized at a rate of $10,087 every six months. The company's December 31 , Year 1 balance sheet should reflect total liabilities associated with the bond issue (including interest) in the amount of: Muliple Choice $3,217,563 $3,340,063 53,782,437 $3,780,000

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