Huskey Mining Corporation issued bonds with a par value of $92,000 on January 1, 2020. The annual contract rate on the b...
Huskey Mining Corporation issued bonds with a par value of $92,000 on January 1, 2020. The annual contract rate on the bonds is 9.00%, and the interest is paid semiannually. The bonds mature after three years. The annual market interest rate at the date of issuance was 11.00%, and the bonds were sold for $87,404.
b. How much total bond interest expense will be
recognized over the life of these bonds? (Do not round
intermediate calculations. Round the final answer to the nearest
whole dollar.)
Homework Answers
Calculate total bond interest expense
| Interest paid (92000*9%*3) | 24840 |
| Discount on bonds payable (92000-87404) | 4596 |
| Total bond interest expense | 29436 |
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