On January 1,2012,Luna Company issued bonds with a face value of $300,000 at 95.The bonds will mature in 5 years.Interest at 9% was payable in cash on December 31 of each year.The discount will be amortized using the straight line method.Based on this information,the amount of interest expense shown on the 2012 income statement and the cash flow from operating activities shown on the 2012 statement of cash flows would be:

Question

Quizplus · Accepted Answer

The Answer of On January 1,2012,Luna Company issued bonds with a face value of $300,000 at 95.The bonds will mature in 5 years.Interest at 9% was payable in cash on December 31 of each year.The discount will be amortized using the straight line method.Based on this information,the amount of interest expense shown on the 2012 income statement and the cash flow from operating activities shown on the 2012 statement of cash flows would be:

On January 1,2012,Luna Company Issued Bonds with a Face Value