Bonds with a face value of $200,000 were purchased through a broker at 97 plus accrued interest of $2,000 and brokerage commissions of $450. The amount to be debited to the investment account is. Under which caption (current assets, current liabilities, investments, long-term liabilities, property, plant, and equipment, stockholders' equity) would each of the following appear on the balance sheet? 4. 5-7. Investment in XYZ Co. Bonds (management intends to hold to maturity in 5 years) 5. 7. Bonds Payable, due 2015.... 8. Bonds that may be exchanged for other securities are called 9. The present value of $2,000 to be paid one year later with earnings of 10% is On April 1, ABC Company issued $6,000,000, 5-year, 12% bonds for $6,094,035. If the bonds pay interest semiannually and if the effective rate of interest is 11%, determine the following: 10-12. 10. The interest paid on September 30 11. The amount of premium amortized on September 30, using the straight- line method (round to the nearest $1).. 12. The accrued interest payable on December 31 .. 13. In Question 11, does the total amount of annual interest expense increase, decrease, or remain the same over the life of the bonds as the premium on bonds payable is amortized? If Bonds Payable has a balance of $4,000,000 and Discount on Bonds Payable has a balance of $55,000, what is the carrying amount of the bonds? 14. 15. Number of times interest charges earned is important to