51. Interest paid for 6 Months Cash = $15,000,000*7.8%*1/2 = $585,000
Discount on issue of Bonds = $15000,000 - $ 14,703,108 = $296,892
date | Interest Cash | Interest expenses@8% | Amortization of Discount | balance of Unamortized Discount | carrying value |
jan 1,2017 | 296892 | 14703108 | |||
June 30,2017 | 585000 | 588124 | 3124 | 293768 | 14706232 |
(14703108*0.08*0.50) | (588124-585000) | (296892-3124) | (14703108+3124) | ||
Dec 31,2017 | 585000 | 588249 | 3249 | 290519 | 14709481 |
(588249-585000) | (293768-3249) | (14706232+3249) |
Option (a) $14,709,481 is correct answer.
As per the HOMEWORKLIB POLICY, Only one question can be answer at a time. So I am giving the answer of first question. Please ask the further question's separately. Thanks.
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