Questions 1 and 2 are based on the following information. on january 1, matthew company issued 7% term bonds with a face amount of $1,000,000 due in 8 years. interest is payable semiannually on january 1 and july 1. on the date of issue, investors were willing to accept an effective interest rate of 6%.1. the bonds were issued on january 1 ata. a premium. b. an amortized value. c. book value. d. a discount.2. assume the bonds were issued on january 1 for $1,062,809. using the effective interest amortization method, matthew company recorded interest expense for the 6 months ended june 30 in the amount of a. $35,000b. $70,000c. $63,769d. $31,884

Value economics capital scarcity opportunity cost wealth labor trade-offs standard of living good a. condition of not having enough resources to produce all the things people want b. alternative choices made by consumers in the marketplace c. sum of those economic products that are tangible, scarce, useful, and transferable d. tools, equipment, machinery, and factories used in the production of goods and services e. tangible item that is economically useful or that satisfies an economic want f. quality of life based on the ownership of the necessities and luxuries that make life easier g. people with all their efforts, abilities, and skills h. cost of the next-best alternative use of money, time, or resources when one choice is made rather than another i. study of how people try to satisfy their needs through the careful use of scarce resources j. worth that can be expressed in dollars and cents