Reference no: EM133102698
Question - On January 1, 2020, Baltimore Company issued $250,000 face value, 7%, 10-year bonds at 102. Interest is paid annually on January 1. Baltimore uses the straight-line method for amortization. Use this information to determine the dollar value of the interest expense for the 2020 calendar year. Round your answer to the nearest whole number (no cents).
The following information is related to Towson Company's fiscal year 2020.
Income Statement:
Net Income $4,000,000
Depreciation Expense 600,000
Loss on Sale of Plant Assets 45,000
Interest Expense 5,000
Balance Sheet - 12/31/17: Increase (Decrease)
Accounts Payable decrease 15,000
Plant Assets - Purchased 250,000
Plant Assets - Disposals (100,000)
Additional Information:
Common Stock exchanged for outstanding Long Term Notes Payable of $125,000
Dividends paid were $30,000
Use this information to determine Towson Company's Net Cash Flows from Operating Activities. If the amount is an outflow then enclose the amount with dollar sign inside of brackets ( ).
On January 1, 2021, Baltimore Company issued $500,000 face value, 5%, 5-year bonds at 101. Baltimore uses the straight-line method for amortization. Use this information to determine the dollar value of the annual bond premium amortization.