On July 31, 2018, Hummbug Corporation issued $100,000, 5%, 20-year bonds for $113,678 when the market interest rate was 4%. The bonds pay semi-annual interest on July 31 and January 31. Hummbug uses...

On July 31, 2018, Hummbug Corporation issued $100,000, 5%, 20-year bonds for $113,678 when the market<br>interest rate was 4%. The bonds pay semi-annual interest on July 31 and January 31. Hummbug uses the straight-<br>line method to amortize its bond discount or premium, and it has a January 31 year-end. How much would interest<br>expense from these bonds be recorded in Hummbug's financial statements for the year ended January 31, 2019?<br>Select one:<br>a. $2,158.05<br>b. $4,658.05<br>C. $2,500<br>d. $5,000<br>Next page<br>37°F<br>e to search<br>DELL<br>

Extracted text: On July 31, 2018, Hummbug Corporation issued $100,000, 5%, 20-year bonds for $113,678 when the market interest rate was 4%. The bonds pay semi-annual interest on July 31 and January 31. Hummbug uses the straight- line method to amortize its bond discount or premium, and it has a January 31 year-end. How much would interest expense from these bonds be recorded in Hummbug's financial statements for the year ended January 31, 2019? Select one: a. $2,158.05 b. $4,658.05 C. $2,500 d. $5,000 Next page 37°F e to search DELL

Jun 10, 2022

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On July 31, 2018, Hummbug Corporation issued $100,000, 5%, 20-year bonds for $113,678 when the market interest rate was 4%. The bonds pay semi-annual interest on July 31 and January 31. Hummbug uses...

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