Presented here is a partial amortization schedule for Roseland Company who sold $300,000, five year 10% bonds on January 1, 2014 for $318,000 and uses annual straight-line amortization. Which of the following amounts should be shown in cell (iii)?
A) $9,000.
B) $18,000.
C) $3,600.
D) $1,800.

Question

Presented here is a partial amortization schedule for Roseland Company who sold $300,000, five year 10% bonds on January 1, 2014 for $318,000 and uses annual straight-line amortization.  Which of the following amounts should be shown in cell (iii)?
A) $9,000. 
B) $18,000. 
C) $3,600. 
D) $1,800.

Quizplus · Accepted Answer

The Answer of Presented here is a partial amortization schedule for Roseland Company who sold $300,000, five year 10% bonds on January 1, 2014 for $318,000 and uses annual straight-line amortization.  Which of the following amounts should be shown in cell (iii)?
A) $9,000. 
B) $18,000. 
C) $3,600. 
D) $1,800.

Presented Here Is a Partial Amortization Schedule for Roseland Company