On January 1, a company issued and sold a $398,000, 6%, 10-year bond payable, and received proceeds of $393,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The journal entry to record the first interest payment is:

A company issued 5-year, 9.00% bonds with a par value of $108,000. The market rate when the bonds were issued was 8.50%. The company received $110,273 cash for the bonds. Using the effective interest method, the amount of recorded interest expense for the first semiannual interest period is:

 

A company has bonds outstanding with a par value of $100,000. The unamortized discount on these bonds is $5,400. The company calls these bonds at a price of $92,000 the gain or loss on retirement is:

 

On January 1, Year 1, Stratton Company borrowed $250,000 on a 10-year, 9% installment note payable. The terms of the note require Stratton to pay 10 equal payments of $38,955 each December 31 for 10 years. The required general journal entry to record the payment on the note on December 31, Year 2 is (round to the nearest dollar):

 

On January 1 of Year 1, Congo Express Airways issued $2,500,000 of 5% bonds that pay interest semiannually on January 1 and July 1. The bond issue price is $2,260,000 and the market rate of interest for similar bonds is 6%. The bond premium or discount is being amortized at a rate of $8,000 every six months. After accruing interest at year end, the company's December 31, Year 1 balance sheet should reflect total liabilities associated with the bond issue (including interest) in the amount of:

Clabber Company has bonds outstanding with a par value of $121,000 and a carrying value of $109,900. If the company calls these bonds at a price of $105,500, the gain or loss on retirement is:

On January 1, MJKB Incorporated exercises a call option that requires MJKB to pay $324,500 for its outstanding bonds that have a carrying value of $328,500 and a par value of $310,000. The company exercises the call option after the semiannual interest payment was made the day before (December 31). The entry to retire the bonds does not include which of the following?

 

Chang Industries has bonds outstanding with a par value of $217,600 and a carrying value of $229,400. If the company calls these bonds at a price of $223,000, the gain or loss on retirement is:

 

On January 1, a company issues bonds dated January 1 with a par value of $380,000. The bonds mature in 5 years. The contract rate is 7%, and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $364,603. The journal entry to record the first interest payment using the effective interest method of amortization is: