On October 1, 2017 Bonita Industries issued 6%, 10-year bonds with a face value of...
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On October 1, 2017 Bonita Industries issued 6%, 10-year bonds with a face value of $8090000 at 104. Interest is paid on October 1 and April 1, with any premiums or discounts amortized on a straight-line basis. Bond interest expense reported on the December 31, 2017 income statement of Bonita Industries would be $113260. $121350. $129440. $226520. On January 1, 2018, Sheridan Company issued its 10% bonds in the face amount of $8080000, which mature on January 1, 2028. The bonds were issued for $9500000 to yield 8%, resulting in bond premium of $1420000. Sheridan uses the effective-interest method of amortizing bond premium. Interest is payable annually on December 31. At December 31, 2018, Sheridan's adjusted unamortized bond premium should be $1372000. $1177600 $1278000. O $1420000
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