On January 1 st 2012, Everhart Corporation, a calendar year company
issues $100,000, 5%, 5-year bonds dated January 1, 2012. The bond pays
interest semiannually on January 1 and July 1 . The bonds are issued
to yield 6%.
2.50% 3.00% 5.00% 6.00%
Present value of a
single sum for 5
periods 0.88385 0.86261 0.78353 0.74726
Present value of a
single sum for 10
periods 0.78120 0.74409 0.61391 0.55839
Present value of an
annuity for 5 periods 4.64583 4.57971 4.32948 4.21236
Present value of an
annuity for 10 periods 8.75206 8.53020 7.72173 7.36009

If Everhart Corporation uses the effective interest method to amortize any premiums or discounts on their
outstanding bonds, what will be the journal entries to record interest expense for calendar year 2013?
(15 points)

You receive a memo from the vice president of procurement responding to your query. he writes: “it will be very important to maintain product continuity. we have a large base of devoted customers. we want to make sure that the quality and key characteristics of island knight stay the same through this transition. talk to frank, our consulting professional perfumer, for more information about the cologne. seasonal variations in costs are the single most significant factor in our deciding to go with another supplier, so finding a way to limit that should be the top priority. the overall marginal costs and shipping costs are probably somewhat less significant. you may want to talk to cindy, the product manager for island knight, regarding pricing information about the product.” what is the best action to take next?