1. Roman Company issued $400,000 of 6%, 5-year bonds at 98, which pays interest annually. Assuming straight-line amortization, what is the total interest cost of the bonds?I have the answer, please give me the solutions to them)
A.. $120,000
b. $128,000
c. $112,000
d. $116,000
2. Terrance Company issued $200,000 of 8%, 5-year bonds at 106. Assuming straight-line amortization and annual interest payments, how much bond interest expense is recorded on the next interest date?
a. $16,000
b. $18,400
c. $13,600
d. $2,400
3. Carson Company issued $500,000 of 8%, 5-year bonds at 106. Assuming straight-line amortization and annual interest payments, what is the amount of the amortization at each interest payment point?
a. $3,000
b. $6,000
c. $40,000
d. $34,000