Larson 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.
Wolford Company borrowed $750,000 from U.S. Bank on January 1, 2009 in order to expand its mining capabilities. The five-year note required annual payments of $195,327 and carried an annual interest rate of 9.5%. What is the amount of expense Wolford must recognize on its 2010 income statement
Fornelli Corporation borrowed $240,000 from Central Bank on May 31, 2009. The three-year, 7% note required annual payments of $91,452 beginning May 31, 2010. Interest expense for the year ended December 31, 2009 was
Moss County Bank agrees to lend the Sadowski Brick Company $200,000 on January 1. Sadowski Brick Company signs a $200,000, 6%, 9-month note. What is the adjusting entry required if Sadowski Brick Company prepares financial statements on June 30?
A) Interest Expense 6000 (D) Cash 6000(C)
B) Interest payable 6000 (D) Interest Expense 6000(C)
C) Interest Expense 6000(C) Interest Payable 6000(C)
D)Interest Payble 6000(D) Cash 6000 (C)