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Question 29 (20 points) A 5-year, $100,000 bond with a stated interest rate of 8.00%....

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Question 29 (20 points) A 5-year, $100,000 bond with a stated interest rate of 8.00%. The market rate is 12.00%. Interest is to be paid semi-annually. What is the correct journal entry at the time the bond is issued? (Using the straight-line method of amortization) a) Debit Cash 85,300, Debit Discount Amortized 14,700 and Credit Bonds Payable 100,000 b) Debit Cash 85,279.36, Debit Discount Amortized 14,720.64 and Credit Bonds Payable 100,000 c) Debit Bonds Payable 100,000 and Credit Cash 85,300 and Credit Discount Amortized 14.700 d) Debit Cash 100,000 and Credit Bonds Payable 100,000 Question 25 (20 points) A 5-year, $100,000 bond with a stated interest rate of 8.00%. The market rate is 12.00%. Interest is to be paid semi-annually. What is the value of the bond at issuance? O a) $29,440.36 Ob) $85,279.36 Oc) $55,839.00 d) $85,250.36 Question 23 (20 points) Tu-Tu Corp issues a 6-year, $100,000 bond with a stated interest rate of 10.00% The market rate is 8.00%. Interest is paid semi-annually. What is the amount of Premium Amortized at the end of the third period? (The straight-line method of amortization is used.) a) $782.11 b) $785.66 Oc) $780.34 O d) $788.02

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