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You have the following information for Brophy, Inc: Assume the interest for all the bonds are based on annual basis. Required: 1. How much interest
You have the following information for Brophy, Inc: Assume the interest for all the bonds are based on annual basis. Required: 1. How much interest expense did the company record during Year 2 on the 7% debentures? How much of the original issue discount was amortized during Year 2 ? 2. How much interest expense did the company record during Year 2 on the zero coupon bonds? 3. Suppose that interest payments on the mortgage are made on December 31 of each year. What journal entry did the company make in Year 2 to recognize interest expense on this debt? 4. How much cash interest did the company pay out during Year 2 on the 7% debentures and the zero coupon bonds? You have the following information for Brophy, Inc: Assume the interest for all the bonds are based on annual basis. Required: 1. How much interest expense did the company record during Year 2 on the 7% debentures? How much of the original issue discount was amortized during Year 2 ? 2. How much interest expense did the company record during Year 2 on the zero coupon bonds? 3. Suppose that interest payments on the mortgage are made on December 31 of each year. What journal entry did the company make in Year 2 to recognize interest expense on this debt? 4. How much cash interest did the company pay out during Year 2 on the 7% debentures and the zero coupon bonds
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