On January 1, 2016, Solo Inc. issued $379,000 of its 6% bonds at 103. Interest is...
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Homework Answers
| The amount of interest expense for the year is | $21,603 |
| ($379,000 x 6% - $11,370/10 years) | |
| (Interest paid in cash - Premium amortized in year) | |
| Issue Price ($379,000 x 103/100) | $390,370 |
| Face Value of bonds payable | $379,000 |
| Premium on bonds payable | $11,370 |
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