1. Jan Company sells 5-year bonds with a face value of $100,000 for $97,000. Interest is paid semiannually. Using the straight-line method, how much will the discount be amortized with each interest payment? a. $300 b. $600 C. $900 d. $1,200 2. Jan Company sells 5-year bonds with a face value of $100,000 for $97,000. Interest is paid semiannually. Using the effective-interest method at 12%, how much interest expense will be recorded with the first payment? a. $11,640 b. $6,000 C. $5,820 d. $180 3. Jan Company sells 5-year bonds with a face value of $100,000 for $97,000. Interest is paid semiannually on October 1 and April 1. Using the straight-line method of amortization and a contract rate of 10%, for how much will Interest Payable be credited in the adjusting entry on December 31? a. $2,350 b. $2,425 c. $2,500 d. $5,000