Question 27 (1 point) On January 1st, 2021, Ray issued bonds with a face value of $500,000 for $440,000 cash. The bonds pay interest once per year on December 31st, beginning in 2021, and have a coupon rate of interest of 5%. At the time of issuance, the market rate of interest was 7%. What is the interest expense relating to these bonds in their second year, 2022? A) $22,000 B) $31,206 C) $30,800 D) $22,290 Question 28 (1 point) Which of the following statements is true? Even though current and non-current debt must be shown separately on the A) statement of financial position, it is not necessary to prepare a journal entry to recognize this. B) "Current maturities of non-current debt" refers to the amount of interest on notes payable that must be paid in the current year. A non- current liability is an obligation that is expected to be paid within one year. D) If any portion of a non-current liability is to be paid in the next year, the entire debt should be classified as a current liability. Question 29 (1 point) On January 1st, 2021, Feeling Inc issued 100 $1,000 bonds for $1,100 cash each. The bonds pay interest annually. On the date of issuance, the company credited bonds payable for 100,000 and premium on bonds payable for $10,000. The market rate of interest is 5%. In the first year, the company amortized $1,500 of the bond premium. What is the interest expense in the second year of the bonds? A) $5,500 B) $6,510 C) $5,425 D) $5,575 Question 30 (1 point) A company received a 4% loan from a bank on January 1, 2021 of $51,000. Loan payments relating to both principal and interest (blended payments) of $11,456 are made once a year at the end of the year. On December 31, 2021, after making the payment, the company's statement of financial position would show (please round the interest expense to the nearest dollar in your calculation): A) A current portion of the loan of $0 and a long term portion of $51,000 B) A current portion of the loan of $9,793 and a long term portion of $31,791 C) A current portion of the loan of $11,456 and a long term portion of $39,544 OD) A current portion of the loan of $9,416 and a long term portion of $41,584