explanations please, and what are the formulas to do these types of questions?

1. Album Co. issued 10-year $200,000 bonds on January 2. The bonds pay interest semiannually. Album uses the effective interest method to amortize bond premiums and discounts. The carrying value of the bonds on January 2 was $185,953. A journal entry was recorded for the first interest payment on June 30. debiting interest expense for $13.016 and crediting cash for $12,000. What is the annual stated interest rate for the bonds? a. 6% b. 7% c. 12% d. 14% 2. On January 1, 2002, Oak Co. issued 400 of its 8%, $1,000 bonds at 97 plus accrued interest. The bonds are dated October 1, 2001, and mature in fifteen years on October 1, 2016. Interest is payable semiannually on April 1 and October 1. Accrued interest for the period October 1, 2001, to January 1, 2002, amounted to $8,000. On January 1, 2002, what amount should Oak report as bonds payable, net of discount? a. $380,300 b. $388,000 c. $388,300 d. $392,000 3. On June 30, 2001, King Co. had outstanding 9%, $5,000,000 face value bonds maturing on June 30, 2006. Interest was payable semiannually every June 30 and December 31. On June 30, 2001, after amortization was recorded for the period, the unamortized bond premium was $30,000. On that date, King acquired all its outstanding bonds on the open market at 98 and retired them. What amount should King recognize as gain on redemption of bonds on its 2001 income statement? a. $70,000 b. $100,000 c. $130,000 d. $152,500 4. On January 2, 2001, Nast Co, issued 8% bonds with a face amount of $1,000,000 that mature on January 2, 2007. The bonds were issued to yield 12%, resulting in a discount of $150,000. Nast incorrectly used the straight-line method instead of the effective interest method to amortize the discount. How is the carrying amount of the bonds affected by the error? At December 31, 2001 At January 2, 2007 Overstated Understated Overstated No effect Understated Overstated Understated No effect