On January 1, a company issued and sold a $410,000, 4%, 10-year bond payable, and received proceeds of $405,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The carrying value of the bonds immediately after the second interest payment is: Multiple Choice $409,750. $405,500. $410,000. $405,250. $404,750. On January 1, a company issues bonds dated January 1 with a par value of $210,000. The bonds mature in 5 years. The contract rate is 11%, and interest is paid semiannually on June 30 and December 31. The market rate is 10% and the bonds are sold for $218,105. The journal entry to record the first interest payment using straight-line amortization is: (Rounded to the nearest dollar.) Debit Interest Payable $11,550; credit Cash $11,550. Debit Bond Interest Expense $10,739; debit Premium on Bonds Payable $811; credit Cash $11,550. Debit Bond Interest Expense $10,739; debit Discount on Bonds Payable $811; credit Cash $11,550. Debit Bond Interest Expense $12,361; credit Discount on Bonds Payable $811; credit Cash $11,550. Debit Bond Interest Expense $12,361; credit Premium on Bonds Payable $811; credit Cash $11,550. On November 12, Higgins, Inc., a U.S. Company, sold merchandise on credit to Kagome of Japan at a price of 1,620,000 yen. The exchange rate was $.00849 per yen on the date of sale. On December 31, when Higgins prepared its financial statements, the exchange rate was $.00855. Kagome paid in full on January 12, when the exchange rate was $.00873. On December 31, Higgins should prepare the following journal entry: Debit Accounts Receivable-Kagome $97; credit Foreign Exchange Gain $97. Debit Foreign Exchange Loss $97; Accounts Receivable-Kagome $97. Debit Sales $97; credit Foreign Exchange Gain $97. No journal entry is required until the amount is collected Debit Foreign Exchange Loss $97; credit Sales $97