On January 1, the Elias Corporation issued 10% bonds with a face value of $56,000. The bonds are sold for $60,000. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, ten years from now. Elias records straight-line amortization of the bond discount. The actual interest expense reported in the income statement for the year ended December 31 of the first year is

$6,000

Explanation:

According to the scenario, computation of the given data are as follow:-

We can calculate the Interest Expenses of Total Bond by using following formula:-

Interest Expenses = Face Value × Rate of Bonds

= $56,000 × 10%

= $5,600

Amortization Expenses = (Bond Issue Price - Bond Face Value) ÷ Bond Term

= ($60,000 - $56,000) ÷ 10

= $400

Interest Expenses of Total Bond = Interest Expenses + Amortization Expenses

= $5,600 + $400

= $6,000

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know