Record the interest payment


Response to the following questions:

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?

 

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Financial Accounting: Record the interest payment
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