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.)
Calculate total bond interest expense
Interest paid (92000*9%*3) | 24840 |
Discount on bonds payable (92000-87404) | 4596 |
Total bond interest expense | 29436 |
Huskey Mining Corporation issued bonds with a par value of $92,000 on January 1, 2020. The annual contract rate on the b...
Tano issues bonds with a par value of $92,000 on January 1, 2017. The bonds' annual contract rate is 10%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 12%, and the bonds are sold for $87,480. 1. What is the amount of the discount on these bonds at issuance? 2. How much total bond interest expense will be recognized over the...
Tano Company issues bonds with a par value of $92,000 on January 1, 2019. The bonds’ annual contract rate is 10%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 12%, and the bonds are sold for $87,480. 1. What is the amount of the discount on these bonds at issuance? 2. How much total bond interest expense will be recognized over...
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