Homework Answers
| Date | Interest Expense | Cash Interest | Discount Amortized | Carrying Value of Bonds |
| 5/1/20 | $11445690 | |||
| 11/1/20 | (11445690*10%*6/12)= 572285 | $516000 | (572285-516000)= 56285 | (11445690+56285)= 11501975 |
| 5/1/21 | (11501975*10%*6/12)= 575099 | 516000 | (575099-516000)= 59099 | (11501975+59099)= 11561074 |
| Total | $115384 |
Cash interest= $12900000*8%*6/12= $516000
NOTE:- For any problem regarding the answer please ask in the comment section.
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