A company issued 6.0%, 5-year bonds with a par value of $170,000. The market rate when the bonds were issued was 7.0%. The company received $162,930.89 cash for the bonds. Using the effective interest method, the amount of interest expense for the second semiannual interest period is:

Multiple Choice

$11,426.25.

$5,702.58.

$10,200.00.

$5,723.67.

$5,100.00.

A company issued 6-year, 8% bonds with a par value of $1,050,000. The market rate when the bonds were issued was 7.5%. The company received $1,060,500 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is:

Multiple Choice

$41,125.

$83,125.

$42,000.

$42,875.

$84,000.

A company issued 5-year, 10.00% bonds with a par value of $124,000. The market rate when the bonds were issued was 9.50%. The company received $126,609 cash for the bonds. Using the effective interest method, the amount of recorded interest expense for the first semiannual interest period is:

Multiple Choice

$11,964.93.

$6,013.93.

$6,200.00.

$3,100.00.

$12,400.00.