How much was interest expense for the first full year

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Question 1: Jeske Company issued $1,000,000 of 8% bonds at a time when the market rate of interest was 10%. If the bonds were issued at a $50,000 discount and interest was paid annually, how much was interest expense for the first full year of the bond issue (utilize the effective-interest amortization technique)?

Question 2: The Environmental Filter Company is planning to sell air filter systems for $3,000 per unit. Variable costs are $1,200 per unit and total fixed costs are $1,200,000. What is the dollar value of sales necessary to break even?

Reference no: EM132604172

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