Question: 1. How is the interest portion of an installment note payment computed?
2. When a borrower records an interest payment on an installment note, how are the balance sheet and income statement affected?
3. Five-year, 6% bonds with a $100,000 par value are issued at a price of $91,893. Interest is paid semiannually, and the bonds' market rate is 8% on the issue date. What is the amount of bond interest expense recorded at the first semiannual period using the straight-line method?