$0. $30,000. $60,000. $90,000. $50,000 to Interest Payable. $80,000 to Discount

Question

      

$0.

      

$30,000.

      

$60,000.

      

$90,000.

       $50,000 to Interest Payable.
       $80,000 to Discount on Bonds Payable.
       $1,920,000 to Bonds Payable.
       $80,000 to Premium on Bonds Payable.

      $133,000
      $133,400
      $133,804
      $137,664

      $0
      $642,330
      $669,600
      $837,000

      $80,000.
      $85,914.
      $86,160.
      $96,000.

2. On December 31, 2010, Nolte Co. is in financial difficulty and cannot pay a note due that day. It is a $1,200,000 note with $120,000 accrued interest payable to Piper, Inc. Piper agrees to accept from Nolte equipment that has a fair value of $580,000, an original cost of $960,000, and accumulated depreciation of $460,000. Piper also forgives the accrued interest, extends the maturity date to December 31, 2013, reduces the face amount of the note to $500,000, and reduces the interest rate to 6%, with interest payable at the end of each year.

Nolte should record interest expense for 2013 of (Points : 2)

Explanation / Answer

2) $30000

3) $80,000 to Premium on Bonds Payable.

7) 133400

8) 642330

9) 86160

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