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These questions come from a practice test, so i have the answers but i would really like to know how to get them in the simplest way.

1. Mary Company purchased a building with a $10,000,000 mortgage. The monthly payments are $135,000 and the interest rate on the mortgage is 12%. (a) The amount of the first monthly payment that will be applied toward interest would be: c. $100,000 (b) The amount of the first monthly payment that will be applied toward principal will be: b. $35,000

2. Bandit Company issued 50 bonds payable; $1,000 each, 9% annual interest, maturity in ten years. The bonds were sold at 96 and the market rate is 11%. The amount of interest expense in the first year using the effective interest method would be: a. $5,280.

3. On January 1, Shell Point Shell Shop issued $1,000,000, 14%, 5-year bonds with interest payable semiannually on July 1 and December 31. The bonds sold for $1,098,540. The market rate of interest at the time of issue was 12%. On the first interest date, using the effective interest method, the amount of bond interest paid to the bondholders by Shell Point Shell Shop would be d. $70,000

4. Jiffy Corporation issued ten-year term bonds on January 1, 20x2, with a face value of $800,000. The face interest rate is 6 percent and interest is payable semiannually on June 30 and December 31. The bonds were issued for $690,960 to yield an effective annual rate of 8 percent. The effective interest method of amortization is used. (b)The journal entry on June 30, 20x2, to record the payment of interest and amortization of discount will include a c. credit to Bond Discount for $3,638. (b) The journal entry to be recorded on December 31, 20x2, for the payment of interest and the amortization of discount will include a d. credit to Bond Discount for $3,784.

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