4) Currie Company borrowed $23,000 from the Sierra Bank by issuing a 11% three-year note. Currie agreed to repay the principal and interest by making annual payments in the amount of $5,321. Based on this information, the amount of the interest expense associated with the second payment would be: (Round your answer to the nearest dollar)

a) $1,671.

b) $2,223.

c) $2,530.

d) $5,321.

5) Jones Company issued bonds with a $140,000 face value on January 1, 2016. The five-year term bonds were issued at 98 and had a 7.50% stated rate of interest that is payable in cash on December 31^st of each year. Jones amortizes the bond discount using the straight-line method. Based on this information:

The amount of interest expense shown on Jones's December 31, 2016 income statement would be:

a) $9,940.

b) $11,620.

c) $10,500.

d) $11,060.

6) Eureka Company issued $180,000 in bonds payable on January 1, 2016. The bonds were issued at face value and carried 6-year term to maturity. They had a 4% stated rate of interest that was payable in cash on January 1st of each year beginning January 1, 2017. Based on this information, the amount of total liabilities appearing on the December 31, 2016 balance sheet would be:

a) $180,000.

b) $187,200.

c) $179,280.

d) $7,200.