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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? Complete this question by entering your answers in the tabs below. 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? (Do not round intermediate calculations. Enter your answers in whole dollars and not millions of dollars.) 2. How much interest expense did the company record during Year 2 on the zero coupon bonds? ( D0 not round intermediate calculations. Enter your answers in whole dollars and not millions of dollars.)
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