Your company sells $47,000 of one-year, 12% bonds for an issue price of $42,500. The journal entry to record this transaction will include a credit to Bonds Payable in the amount of: Multiple Choice $42,500. $48,140. $52,640. $47,000. On January 1, Melrose Manufacturing issues a 5-year bond with a face value of $10,000 and a stated interest rate of 7%. The market interest rate is 5%. The issue price of the bond was $10,866. Using the effective-interest method of amortization, the interest expense for the first year ended December 31 would be: Multiple Choice $543.30. $700.00. $500.00. $760.62