Hello, so, I already have the final answer for these questions but can anyone confirm their answers 1 answer below »

Hello,

so, I already have the final answer for these questions but can anyone confirm their answers and provide an explaination of how they were obtained?

1. Webster Company issues $1,000,000 face value, 6%, 5-year bonds payable on December 31, 2015. Interest is paid semiannually each June 30 and December 31. The bonds sell at a price of 97; Webster uses the straight-line method of amortizing bond discount or premium.

The amount of bond interest expense recognized by Webster Company in 2016 with respect to these bonds is:

Select one:

a. $60,000

b. $66,000

c. $63,000

d. $120,000

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2. Astoria Co. had the following transactions during the month of August 2014:

* Cash received from bank loans was $20,000.
* Dividends of $9,500 were paid to stockholders in cash.
* Revenues earned amounted to $33,500.
* Expenses incurred were $26,000.

Refer to the information above. What amount of net income will be reported on an income statement for the month of August?

Select one:

a. $20,000

b. $7,500

c. $9,500

d. $33,500

——————–

3. Eagle News has a $6,000 account receivable from one of its advertisers, Allwood Floors. When Eagle receives $3,600 from Allwood as partial payment:

Select one:

a. Eagle should credit Accounts Receivable for $3,600.

b. Eagle should debit Accounts Receivable for $3,600.

c. Eagle should credit Cash for $3,600.

d. Eagle makes no journal entry until the total of $6,000 is received from Allwood.

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4. Powers Company wishes to issue $2,000,000 of 8%, 10 year bonds which pay interest semi-annually. The current discount rate is 6%. What amount should the bonds sell for? Round your calculations of present value factor to five digits after the decimal point and your final answer to an integer.

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