Kier Company issued $620,000 in bonds on January 1, Year 1. The bonds were issued at face value and carried a 3-year term to maturity. They had a 5.50% stated rate of interest that was payable in cash on December 31st. Based on this information alone, the amount of interest expense shown on the December 31, Year 1 income statement and the cash flow from operating activities shown on the December 31, Year 1 statement of cash flows would be: Interest Expense A. B. C. D. $34,100 zero $34,100 zero Cash Outflow zero $34,100 $34,100 zero
Kier Company issued $620,000 in bonds on January 1, Year 1. The bonds were issued at face value and carried a 3-year term to maturity. They had a 5.50% stated rate of interest that was payable in cash on December 31st. Based on this information alone, the amount of interest expense shown on the December 31, Year 1 income statement and the cash flow from operating activities shown on the December 31, Year 1 statement of cash flows would be: Interest Expense A. B. C. D. $34,100 zero $34,100 zero Cash Outflow zero $34,100 $34,100 zero
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Kier Company issued $620,000 in bonds on January 1, Year 1. The bonds were issued at face value and carried a 3-year term to maturity. They had a
5.50% stated rate of interest that was payable in cash on December 31st. Based on this information alone, the amount of interest expense shown on the
December 31, Year 1 income statement and the cash flow from operating activities shown on the December 31, Year 1 statement of cash flows would be:
Interest Expense
A.
B.
C.
D.
$34,100
zero
$34,100
zero
Cash Outflow
zero
$34,100
$34,100
zero](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc7fe5a73-45e4-4166-8ba1-50e355550dfc%2F833168e5-375c-4352-9c86-b9246c8f5646%2Fchsknif_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Kier Company issued $620,000 in bonds on January 1, Year 1. The bonds were issued at face value and carried a 3-year term to maturity. They had a
5.50% stated rate of interest that was payable in cash on December 31st. Based on this information alone, the amount of interest expense shown on the
December 31, Year 1 income statement and the cash flow from operating activities shown on the December 31, Year 1 statement of cash flows would be:
Interest Expense
A.
B.
C.
D.
$34,100
zero
$34,100
zero
Cash Outflow
zero
$34,100
$34,100
zero
![Kier Company issued $620,000 in
bonds on January 1, Year 1. The
bonds were issued at face value and
carried a 3-year term to maturity.
They had a 5.50% stated rate of
interest that was payable in cash on
December 31st. Based on this
information alone, the amount of
interest expense shown on the
December 31, Year 1 income
statement and the cash flow from
operating activities shown on the
December 31, Year 1 statement of
cash flows would be: A. B. C. D.
Interest Expense $34,100 zero
$34,100 zero Cash Outflow zero
$34,100 $34,100 zero
9:34 PM ✓](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc7fe5a73-45e4-4166-8ba1-50e355550dfc%2F833168e5-375c-4352-9c86-b9246c8f5646%2F0y6s7z_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Kier Company issued $620,000 in
bonds on January 1, Year 1. The
bonds were issued at face value and
carried a 3-year term to maturity.
They had a 5.50% stated rate of
interest that was payable in cash on
December 31st. Based on this
information alone, the amount of
interest expense shown on the
December 31, Year 1 income
statement and the cash flow from
operating activities shown on the
December 31, Year 1 statement of
cash flows would be: A. B. C. D.
Interest Expense $34,100 zero
$34,100 zero Cash Outflow zero
$34,100 $34,100 zero
9:34 PM ✓
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