On January 1, 2015, Rio Chaise Limited sold $100,000 8% 10-year bonds to yield 10%.The bonds pay interest semi-annually each July 1 and January1.The accounting period ends December 31.Rio Chaise amortizes any bond discount or premium using the effective interest method.
A) What was the selling price of the bond?
B) What was the amount of interest expense recorded on July 1, 2015?
C) What was the amount of the cash payment for interest on July 1, 2015?
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