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24 April, 00:07

On January 1, 2018, Quinton Corporation issued 8% bonds with a face value of $100,000. The bonds are sold for $98,000. The bonds pay interest semiannually on June 30 and December 31, and the maturity date is December 31, 2022. Quinton Corporation records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31, 2018, is a.$8,400. b.$7,600. c.$8,000. d.$8,200.

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  1. 24 April, 00:17
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    a.$8,400

    Explanation:

    Amortization of bonds discount = (100000 - 98000) / 5years

    = 2000/5

    = 400

    Interest expenses = interst on face value + amortization of bond discount

    = (100000*8%) + 400

    = $8400

    Therefore, The bond interest expense for the year ended December 31, 2018, is $8400.
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