1. The interest charged on a $55000, 60-day note payable, at the rate of 6%,...
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Accounting
1. The interest charged on a $55000, 60-day note payable, at the rate of 6%, would be (Hint: Use 360 days for calculation)
$3300.
$825.
$1833.
$550.
2.
A $611000 bond was retired at 96 when the carrying value of the bond was $601000. The entry to record the retirement would include a
gain on bond redemption of $10000.
loss on bond redemption of $14440.
gain on bond redemption of $14440.
loss on bond redemption of $10000.
3. Crane Company issued $450000 of 6%, 10-year bonds on its interest date for $381850 to yield an effective annual rate of 8%. The effective-interest method of amortization is to be used. Interest is paid annually. What amount of discount (to the nearest dollar) should be amortized for the first interest period?
$7096
$5452
$4089
$3548
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