Question
I am at work and I have a little free time and need help. Can you please help me with this questions.. I need to
I am at work and I have a little free time and need help. Can you please help me with this questions.. I need to finish before my manager comes back. Please help me thank you so much.
Franklin Corporation issues $91,000, 10%, five-year bonds on January 1 for $95,100. Interest is paid semiannually on January 1 and July 1. If Franklin uses the straight-line method of amortization of bond premium, the amount of bond interest expense to be recognized on July 1 is
a.$7,280
b.$3,640
c.$4,050
d.$4,140
On January 1, Elias Corporation issued 7% bonds with a face value of $59,000. The bonds are sold for $57,230. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, 10 years from now. Elias records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 of the first year is
a.$4,130
b.$344
c.$4,307
d.$1,770
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