1.Blue Note Corporation issued a $100,000, 10-year, 10 percent bond on January 1, 2013, for $112,000. Blue Note uses the straight-line method of amortization. On April 1, 2015, Blue Note reacquired the bonds for retirement when they were selling at 104 on the open market. How much gain or loss should Blue Note recognize on the retirement of the bonds?
2.A company issues $20,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2014. Interest is paid on June 30 and December 31. The proceeds from the bonds are $19,604,144. What is interest expense for 2017, using straight-line amortization?
3A company issues $20,000,000 face value of bonds at 96 on January 1, 2013. The bonds are dated January 1, 2013, pay interest semi annually at 8% on June 30 and December 31, and mature in 10 years. Straight-line amortization is used for discounts and premiums. On September 1, 2016, $12,000,000 of the bonds are called at 102 plus accrued interest. What gain or loss would be recognized on the called bonds on September 1, 2016?
4A company issues $10,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2014. Interest is paid on June 30 and December 31. The proceeds from the bonds are $9,802,072. What is interest expense for 2015, using straight-line amortization?
5A Company issued 100,000 shares of $10 par common stock for $1,200,000. A year later A Company acquired 12,000 shares of its own common stock at $15 per share. Three months later A Company sold 6,000 of these shares at $19 per share. If the cost method is used to record treasury stock transactions, to record the sale of the 6,000 treasury shares, A Company should credit