During 2019, Baker Company sold 10,000 computers; customers…

During 2019, Baker Company sold 10,000 computers; customers have the option to purchase an extended 2-year warranty covering parts and service and 3,000 of their customers purchased the extended warranty.  Baker Company recognizes the revenue for the extended warranty on a straight-line basis over the years covered.  What is the impact to each of the financial statement categories below when Baker company recognizes the revenue in 2020 related to the extended warranty?

Using the partial effective interest amortization table belo…

Using the partial effective interest amortization table below for a $750,000 face value bond, calculate the market rate of interest per period for this bond issuance.  Cash   Interest Expense  Discount   Carrying Value   Issuance          687,625  Period 1             18,750            24,067              5,317         692,942  Period 2             18,750            24,253              5,503         698,445