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On January 1. Year 1. Barnes Company issued a $100,000 installment note. The note had a 10-year term and an 8 percent interest rate Barnes agreed to repay the principal and interest in 10 annual payments of $14.903 at the end of each year. The amount of Interest expense shown on the Year 2 income statement is (round your answer to two decimal places).
> $14.903 $7.455 $8,000 $7,448
On January 1, Year 1 Residence Company issued bonds with a $50,000 face value The bonds were issued at 104 resulting in a 4% premium. They had a 20 year term and a stated rate of interest of 7%. The company amortizes the premium on a straight-line basis. Which of the following shows how the recognition of interest expense will affect Residence's financial statements on December 31, Year 1?

Answer :

DEVANSHCHHGO

Balance Sheet = $3500 and  Income Statement (statement of cashflows) = $3400

What is Balance Sheet?

A financial statement that lists a company's assets, liabilities, and shareholder equity at a certain point in time is referred to as a balance sheet. The foundation for calculating investor return rates and assessing the capital structure of a company is provided by balance sheets. The balance sheet is a financial statement that gives a quick overview of the assets and liabilities of a firm as well as the amount of shareholder investment. When doing basic analysis or calculating financial ratios, balance sheets can be utilized in conjunction with other crucial financial data.

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