A company issued 5-year, 7% bonds with a par value of $100,000. The market rate when the bonds were issued was 6.5%. The company received $102,105 cash for the bonds. Using the effective interest method, the amount of recorded interest expense for the first semiannual interest period is:
A. $6,573.90.
B. $3,318.41.
C. $1,750.00.
D. $3,500.00.
E. $7,000.00.
Answer: B
You might also like to view...
The communication channel a company uses to convey its advertising messages from sender to receiver is called the ________
A) message B) medium C) encoder D) communicator E) feedback
The following information is available for Alba Company's maintenance cost over the last four months.MonthMaintenance hoursMaintenance costJanuary150$6,000February120$5,100March240$8,100April210$6,900Use the high-low method to estimate both the fixed and variable component of its maintenance cost.
What will be an ideal response?
Describe Brett et al.’s four recommendations for leading multicultural teams in a challenging circumstance as a future human services’ leader?
What will be an ideal response?
A person who transfers an instrument for consideration makes transfer warranties to all subsequent transferees and holders who take the instrument in good faith
Indicate whether the statement is true or false