On January 1 of the current year, the Queen Corporation issued 7% bonds with a face value of $70,000. The bonds are sold for $67,900. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, five years from now. Queen records straight-line amortization of the bond discount. Determine the bond interest expense for the year ended December 31. Select the correct answer. $408 $2,100 $5,320 $4,900

$5,320

Explanation:

the journal entry to record the issuance of the bonds

January 1

Dr Cash 67,900

Dr Discount on bonds payable 2,100

    Cr Bonds payable 70,000

the journal entry to record the first and second coupon payments

June 30 and December 31, first and second coupon payment

Dr Interest expense 2,660

    Cr Cash 2,450

    Cr Discount on bonds payable 210

Amortization of bonds payable = $2,100 / 10 coupons = $210 per coupon

total interest expense for the year = $2,660 x 2 = $5,320

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

your welcome leave a rate and a < 3

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