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  3. a company issues 9%, 5-year bonds with a par value

A company issues 9%, 5-year bonds with a par value of $100,000 on January 1...

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Accounting

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A company issues 9%, 5-year bonds with a par value of $100,000 on January 1 at a price of $106,160, when the market rate of Interest was 8%. The bonds pay interest semiannually. The amount of each semiannual interest payment is: Multiple Choice $9,000 $8,000 $4,000 $4,500 o $0 On July 1, Shady Creek Resort borrowed $250,000 cash by signing a 10-year, 8% installment note requiring equal payments each June 30 of $37,258. What is the journal entry to record the first annual payment? Multiple Choice Debit Cash $250,000; debit Interest Expense $37,258, credit Notes Payable $287,258, Debit interest Expense $37,258, credit Cash $37,258. Debit Interest Expense $20,000 credit Cash $20,000 Debit interest Expense $20,000, debit Interest Payable $17,258, credit Cash $37.258

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