On January 1, 2012, Scott Corporation issued 10-year $100,000 bonds with a 6% stated rate of interest at 103. Scott Corporation pays the interest annually on December 31 and uses the straight-line amortization method. Which of the following is the correct general journal entry to record the interest expense for 2012? Debit Credit a. Interest Expense 6,000 Premium on Bonds Payable 300 Cash 5,700 b. Interest Expense 6,000 Cash 6,000 c. Interest Expense 6.300 Premium on Bonds Payable 300 Cash 6,000 d. Interest Expense 5,700 Premium on Bonds Payable 300 Cash 6,000 OA. O B. OC. OD. QUESTION 17 5 points s On January 1, 2011, Langdon Corporation issued $100,000 face value bonds for $92,977. The bonds had a 10-year term and a 6% stated rate of annual interest. At the time the bonds were issued, the market rate of interest of interest for bonds of comparable risk was 7%. Using the effective interest rate method, what is the amount of the discount amortization for 2011? O A. $421.38 O B. $508.39 O C. $1,000.00 O D. The discount is not amortized when using the effective interest rate method. On January 1, 2012, Stacy Corporation issued 5-year $100,000 bonds with a 4% stated rate of interest at 97. Stacy Corporation pays the interest annually on December 31 and uses the straight-line amortization method. Which of the following choices represents the general journal entry required to record the issuance of the bonds? Debit Credit a. Cash 100,000 Premium on Bonds Payable 3,000 Bonds Payable 97,000 b. Cash 100,000 Bonds Payable 100,000 c. Cash 97,000 Discount on Bonds Payable 3,000 Bonds Payable 100,000 d. Cash 97,000 Premium on Bonds Payable 3,000 Bonds Payable 100,000 O A O B. OD QUESTION 15 5 points Save Answer On January 1, 2012, Stacy Corporation issued 5-year $100,000 bonds with a 4% stated rate of interest at 97. Stacy Corporation pays the interest annually on December 31 and uses the straight-line amortization method. What is the carrying value of the bonds that Stacy Corporation will report on its balance sheet at the end of 2012? O A. $96,400 O B. $97,000 O C. $97,600 O D. $100,000