What would be the amount of interest expense


Johnson Company issued bonds with a $100,000 face value on January 1, 2008. The five-year term bonds were issued at 98 and had a 7% stated rate of interest that is payable in cash on December 31st of each year. Based on this information: what would be the amount of interest expense shown on Johnson's December 31, 2008 income statement ?

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Accounting Basics: What would be the amount of interest expense
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