Question
1.) Littlefield Industries purchased a bond on September 1 of the current year for $200,000 and classified the investment as trading debt. The market value
1.) Littlefield Industries purchased a bond on September 1 of the current year for $200,000 and classified the investment as trading debt. The market value of the trading debt investment at year-end is $196,000. The adjustment is ______.
2.) On January 1, 2019, Commercial Equipment Sales issued $36,000 in bonds for $19,700. These are sixyear bonds with a stated interest rate of 9%, and pay semiannual interest on June 30 and December 31. Commercial Equipment Sales uses the straight-line method to amortize the Bond Discount. What amount is debited to Interest Expense on June 30, 2019?
3.) A $$33,000, three- month, 1212% note payable was issued on December 1, 2018. What is the amount of accrued interest on December 31, 2018? (Do not round any intermediate calculations, and round your final answer to the nearest dollar.)
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