Question 1:

A company issues $100,000 face value, 8% coupon paid semi-annually, 4-year U.S. corporate bonds on January 1, 20XO, when the market rate for similar risk bonds is 5%. The firm uses the effective-interest amortization. What is the amount for the second interest expense payment?

Question 2:

A company issues $100,000 face value, 8% coupon paid semi-annually, 4-year U.S. corporate bonds on January 1, 20XO when the market rate for similar risk bonds is 12%. The firm uses the effective-interest amortization. What is the amount for the second interest expense payment?

Question 3:

A company issues $100,000 face value, 8% coupon paid semi-annually, 4-year U.S. corporate bonds on January 1, 20XO, when the market rate for similar risk bonds is 5%. The firm uses the effective-interest amortization. What is the amount for the second discount or premium Bond Payable journal entry?