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How much interest is paid at each interest payment date

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Question -

A) On January 1, 2021, $1040000, 5-year, 7% bonds, were issued for $997819. The interest rate in effect when the bonds were issued was 8%. Interest is paid semi-annually on January 1 and July 1. How much interest is paid at each interest payment date?

a. $72800

b. $83200

c. $36400

d. $41600

B) Swifty Corporation issues 1,000, 10-year, 6%, $1000 bonds dated January 1, 2021, at 98. The journal entry to record the issue will show a

a. debit to Cash for $980000.

b. debit to Cash for $1000000.

c. credit to Bonds Payable for $1000000.

d. credit to Discount on Bonds Payable for $20000.

Reference no: EM132998636

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