On july 1 year 1 frick corp issued 600 of its 10 1000 bonds


1. On January 2, year 1, Frick Co. sold equipment with a carrying amount of $480,000 in exchange for a $600,000 non interest-bearing note due January 2, year 4. There was no established exchange price for the equipment. The prevailing rate of interest for a note of this type at January 2, year 1, was 10%. The present value of $1 at 10% for three periods is 0.75. In Frick's year 1 income statement,what amount should be reported as interest income? Question options: $45,000 $50,000 $ 9,000 $60,000

2. On July 1, year 1, Frick Corp. issued 600 of its 10%, $1,000 bonds at 99 plus accrued interest. The bonds are dated April 1, year 1, and matureon April 1, year 11. Interest is payable semiannually on April 1 and October 1. What amount did Frick receive from the bond issuance? Question options: $594,000 $600,000 $579,000 $609,000

3. Frick Co. incurred costs of $3,300 when it issued, on August 31, year 1, five-year debenture bonds dated April 1, year 1. What amount of bondissue expense should Frick report in its income statement for the year ended December 31, year 1? Question options: $3,300 $ 495 $ 220 $ 240

4. On March 1, year 1, Frick Corp. issued $500,000 of 10% nonconvertible bonds at 103, due on February 28, year 11. Each $1,000 bond wasissued with thirty detachable stock warrants, each of which entitled the holder to purchase, for $50, one share of Frick's $25 par common stock.On March 1, year 1, the market price of each warrant was $4. By what amount should the bond issue proceeds increase stockholders' equity? Question options: $60,000 $0 $45,000 $15,000.

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Financial Accounting: On july 1 year 1 frick corp issued 600 of its 10 1000 bonds
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