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Question 2 3.85 pts XYZ Corporation issues $1,000,000 of face value bonds that mature in 20 years at a discount on January 1, 2021. XYZ.received
Question 2 3.85 pts XYZ Corporation issues $1,000,000 of face value bonds that mature in 20 years at a discount on January 1, 2021. XYZ.received a total of $960,000 on January 1, 2021. The contractual interest rate for the bonds is 6% and the market rate of interest at the date of sue is 7% Using the straight-line method, what is the total amount of interest expense, including amortization of the discount, thor XYZ should recognize on December 31, 2021 when XYZ accrues the interest on the bonds for 2021? O $70,000 $62.000, $58,000. O $60,000 385 nts D Question 3 385 pts On November 1, 2021. Hipps Company borrowed $100,000 from City National Bank on a 6-month, 6% note payable. The entire principal and interest is due on April 30, 2022. If the company's year-end is December 31, 2021, what adjusting entry should Hipps Company make on December 31, 2021? Debit interest Expense 1.000 Credit Cash 1.000. Debit Interest Expense 3.000 Credit Interest Payable 3.000, Debit interest Expense 1.000: Credit Interest Payable 1,000. Debit interest Payable 1.000: Credit Interest Expense 1,000
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