MC Qu. 131 A company issued...

A company issued 6-year, 8% bonds with a par value of $350,000. The market rate when the bonds were issued was 7.5%. The company received $353,500 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is:

Multiple Choice:

$14,000.

$27,708.

$28,000.

$13,708.

$14,292.

MC Qu. 132 A company issued...

A company issued 5-year, 9.00% bonds with a par value of $104,000. The market rate when the bonds were issued was 8.50%. The company received $106,189 cash for the bonds. Using the effective interest method, the amount of recorded interest expense for the first semiannual interest period is:

Multiple Choice:

$4,680.00.

$9,360.00.

$4,513.03.

$8,963.14.

$2,340.00.