Question

On December 31, 2011, Philips Corporation issued bonds with a total face amount of $1,000,000 and a stated rate of 7 percent.

Required:
1. Calculate the interest expense for 2012 if the bonds were sold at par.
2. Calculate the interest expense for 2012 if the bonds were sold at a premium and the straight-line premium amortization for 2012 is $8,000.
3. Calculate the interest expense for 2012 if the bonds were sold at a discount and the straight-line discount amortization for 2012 is $6,000.


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  • CreatedSeptember 22, 2015
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