Use the following information to answer questions 5 through…

Use the following information to answer questions 5 through 7   Army Supply Company issued five-year, 7% bonds with a face value of $25,000 on January 1, 1722.  The effective rate of interest is 6%.  Army Supply sold the bonds for $26,053. The bonds pay annual interest each December 31. What is the amount of cash that Army Supply will pay to bond holders for interest in 1724?

On October 1, 2033, Cameron Equipment signed a one-year, 8%…

On October 1, 2033, Cameron Equipment signed a one-year, 8% interest-bearing note payable for $50,000. Assuming Cameron Equipment maintains its books on a calendar year basis, how much interest expense should be reported in the 2033 income statement? Assume this is the only interesting bearing note.