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  3. 1. on october 1, 2022, donna equipment signed a on

1. On October 1, 2022, Donna Equipment signed a one-year, 8% interest-bearing note payable for...

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Accounting

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1. On October 1, 2022, Donna Equipment signed a one-year, 8% interest-bearing note payable for $50,000, Assuming that Donna Equipment maintains its books on a calendar year basis, how much interest expense should be feported in the 2023 income statement? A. $1,000. B. $2,000, C. $3,000. D. $4,000. 2. Eaton Company issued $5 million of bonds with a 10% coupon rate of interest. When Eaton issued the bonds, the market rate of interest was 11%. Which of the following statements is correct? A. The bonds were issued at a premium. B. Annual interest expense will exceed the company's actual cash payments for interest. C. Annual interest expense will be $500,000. D. The book value of the bond will decrease as the bond matures. 3. On January 1, 2019, Tonika Company issued a four-year, $10,000,7% bond. The interest is payable annually each December 31 . The issue price was $9,668 based on an 8% effective interest rate. Tonika uses the effective-interest amortization method. The 2020 interest expense is closest to: A. $779. B. $796. C. $677. D. $700. The December 31, 2020 book value after the December 31, 2020 interest payment was made is closest to: A. $9,662. B. $9,820. C. $9,668. D. 59,723

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