Question 15 3.33 pts Panella Platters issued $200,000 of its 10-year, 12% bonds for $225,000 on October 1, 2011. The effective rate on the bonds was 10% and interest is paid each October 1 and April 1. Assuming Panella uses the effective interest method, the adjusting entry on December 31, 2011, would include a: Credit to Interest Payable for $6,000. a. Credit to Premium on Bonds Payable for $375. Debit to Interest Payable for $5,625. Debit to Interest Expense for $6,375 Question 16 3.33 pts On January 1, 2012, Reed, Inc. issued $50,000 of 10-year, 8% bonds for $43,800. Interest was payable semiannually on 6/30 and 12/31. The effective interest rate was 10%. The effective interest method of discount amortization was used. What amount of interest expense should be recorded for the six-month period ending December 31, 2012? $2,199.50 $2,180.50 $2,209.00 $2.205.50 Question 17 3.33 pts On January 1, 2011, the Joy Co. issued $70,000 of 20-year, 8% bonds for $86,000. Interest was payable annually. The effective interest rate was 6%. The effective-interest method was used to amortize the premium. What amount of premium would be amortized for the year ended December 31, 2012? $466.40 O $902.40 $413.60 $226,60