1.On January 1, Flounder Corp. issues $2280000, 5-year, 12% bonds at 97 with interest payable on January 1. The entry on December 31 to record accrued bond interest and the amortization of bond discount using the straight-line method will include a

credit to Discount on Bonds Payable, $13680.

debit to Interest Expense, $273600.

debit to Interest Expense, $136800.

credit to Discount on Bonds Payable, $6840.

2.

Oriole Company issued $580000 of 8%, 5-year bonds at 107, which pay interest annually. Assuming straight-line amortization, what is the carrying value of the bonds after one year?

$612480

$616540

$624660

$620600