16. Perez Company sold five-year, 8% bonds on October 1, 2021. The face amount of the bonds was $100,000, while the issue price was $102,000. Interest is payable on April 1 of each year. The fiscal year of Perez Company ends on December 31. How much interest expense will Perez Company report in its December 31, 2021, income statement (assume straight-line amortization)? A. $1900. B. $2,000. C. $1,778. D. $2,040.
16. Perez Company sold five-year, 8% bonds on October 1, 2021. The face amount of the bonds was $100,000, while the issue price was $102,000. Interest is payable on April 1 of each year. The fiscal year of Perez Company ends on December 31. How much interest expense will Perez Company report in its December 31, 2021, income statement (assume straight-line amortization)? A. $1900. B. $2,000. C. $1,778. D. $2,040.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![16. Perez Company sold five-year, 8% bonds on October 1, 2021. The face amount of the bonds was $100,000, while the issue price was $102,000. Interest is payable on April 1
of each year. The fiscal year of Perez Company ends on December 31. How much interest expense will Perez Company report in its December 31, 2021, income statement
(assume straight-line amortization)?
A. $1900.
B. $2,000.
C. $1,778.
D. $2,040.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa1e1d114-cba9-4c4f-a9ab-1a346fb28105%2F586738b5-1b54-440a-b00a-91f3635d37c2%2F81fdw8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:16. Perez Company sold five-year, 8% bonds on October 1, 2021. The face amount of the bonds was $100,000, while the issue price was $102,000. Interest is payable on April 1
of each year. The fiscal year of Perez Company ends on December 31. How much interest expense will Perez Company report in its December 31, 2021, income statement
(assume straight-line amortization)?
A. $1900.
B. $2,000.
C. $1,778.
D. $2,040.
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