Questions -
Q1 - Debra Technologies invested $50,000 to buy face value, 8% 5 yr in municipal bonds on January 2, 2010. The bonds will mature on January 2, 2015. The bonds pay interest semiannually on January 2 and July 2 every year till maturity. When the company received interest payments, how will the balance sheet line items be affected?
A - Equity will increase
B- Units - of - production
C - Assets will decrease
D - Declining-balance
Q2. On June 1, 2015, Smith & Bwwcham Services issued $ 30,000 of 7.5% bonds that mature in five years. There were sold at par. The bonds pay semiannual interest payments on June 30 and December 31 of each year. On December 31, 2015, what is the total interest payments made to bondholders?
A- 750.00
B - $2,250.00
C - $ 1,125.00
D - 14,200
Q3. On January 1, 2025, carter sales issued $ 15,000 in bonds for $14,300. They were 8 years bonds with a stated rate of 9% and pay semiannual interest. Carter Sales uses the straight line method to amortize the bond discount. After the first interest payment on June 30, 2015, what was the bond carrying amount? (Round your intermediate answers to the nearest dollar.)
A- $14,344
B- $ 14,400
C- $15,000
D - $14,200