Question
(1)Owl Co. issued $200,000, 10%, 5-year bonds, issued at 110, when market rate was 5%. In Owl's 1stsemi-annual entry, what is interest expense, using effective
(1)Owl Co. issued $200,000, 10%, 5-year bonds, issued at 110, when market rate was 5%. In Owl's 1stsemi-annual entry, what is interest expense, using effective interest amortization method?
$8,000
$5,500
$10,000
$5,000
(2) During 2020, Fox Co. had 10,000 common shares authorized with 8,000 issued and 7,000 outstanding. At year-end Fox declares $10 per share in dividends with 70% paid at declaration and 30% paid next year. What are the financial statement effects of Fox's entry ondeclaration?
A: DL: DSE: DNI: DCFs: D
A: DL: ISE: NENI: NECFs: D
A: DL: ISE: DNI: NECFs: D
A: DL: ISE: DNI: DCFs: D
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