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January 1, Year 1, Pierce Corporation issued $25,000 in 8%,5-year bonds payable at 102. Interest...

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Accounting

January 1, Year 1, Pierce Corporation issued $25,000 in 8%,5-year bonds payable at 102. Interest payments are due each December 31. Pierce uses
straight-line method to amortize bond discounts and premiums.
ch of the following shows the effect of the interest payment and amortization on December 31, Year 1?
Multiple Choice
Option B
Option A
Option C
On January 1, Year 1, Denver Company issued bonds with a face value of $65,000, a stated rate of interest of 9%, and a 5-year term to maturity. The
bonds were sold at 103. Denver uses the straight-line method to amortize bond discounts and premiums. What is the amount of interest expense during
Year 1?
Multiple Choice
$5,46C
$6,240
$6,02lon
$5,850
On January 1, Year 1, Jones Company issued bonds with a $220,000 face value, a stated rate of interest of 7.5%, and a 5-year term to maturity. The bonds
were issued at 97. Interest is payable in cash on December 31st of each year. The company amortizes bond discounts and premiums using the straight-line method.
What is the amount of interest expense shown on Jones' income statement for the year ending December 31, Year 1?
Multiple Choice
$17,820
$19,140
$15,180
$16,500
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