Question: Hillside issues $1,600,000 of 9%, 15-year bonds dated January 1, 2015, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,958,394.
Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life.
Total bond interest expense over life of bonds:
Amount repaid:
___________ payments of _________
?Par value of maturity _____________
Total Repaid
Less amount borrowd _____________
Total bond interest expense
Prepare the first two years of an amortization table using the straight-line method
| Semiannual Period End |
Unamortized Premium |
Carrying Value |
| 01/01/2015 |
|
|
| 06/30/2015 |
|
|
| 12/31/2015 |
|
|
| 06/30/2016 |
|
|
| 12/31/2016 |
|
|