QUESTION 22 On January 1, 20X2, Serenity Inc. issued a five-year note payable for $200,000...
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QUESTION 22 On January 1, 20X2, Serenity Inc. issued a five-year note payable for $200,000 and received $190,000 in cash. The note bears interest at 6%, which is paid annually on December 31. There were $5,000 in directly related legal costs with respect to the note payable that Serenity paid in cash. Serenity has classified the note as an "other financial liability." The company has a May 31 year end and reports under IFRS. Serenity calculates interest based on the numbers of days the liability is outstanding. January 1, 20X2 - May 31, 20X2 is 151 days. What amount of interest expense related to this financial liability will Serenity recognize for its 20X2 fiscal year? a. $4,964 b.$5,681 c. $5,327 d. $6,025 QUESTION 23 Stanger Inc. originally planned to issue $100,000 of 6.0% par bonds on January 1, 20X7 with interest payable on June 30 and December 31. Due to some delays in the regulatory approval process the bonds are not issued (sold) until March 1, 20x7. What was the total amount of cash that Stanger Inc. received from the sale of the bonds? a. $99,000 b.$100,000 $102,000 d. $101,000
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