1.Kaselitz Corp. issued a $100,000, 8%, 5-year bond on 1/1/16. Interest is paid each June 30 and December 31. The bond sold for $104,158 to yield 7%. The effective interest method is used.

Cash interest paid to the bondholders in 2016 is:

Select one:

a. $7,291

b. $8,333

c. $7,365

d. $7,000

e. $8,000

2.

Kaselitz Corp. issued a $100,000, 9%, 5-year bond on 1/1/16. Interest is paid each June 30 and December 31. The bond sold for $104,055 to yield 8%. The effective interest method is used.

The Premium on Bonds Payable amortized in 2016 is:

Select one:

a. $811

b. $336

c. $689

d. $676

e. $348