Question: 14-14 Quatro Co. issues bonds dated 1/1/2017 with a par value of $300,000. The bonds annual rate is 13% and interest is paid semiannually on

14-14 Quatro Co. issues bonds dated 1/1/2017 with a par value of $300,000.

The bonds annual rate is 13% 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%.

The bonds are sold for $307,388.

1. What is the amount of the premium on the bonds at issuance? 2. How much bond interest expense will be recognized over the life of the bonds? 3. Prepare an amortization table for these bonds; use the effective interest method to amortize the discount.

14-15. On 1/1/2017 Duval Co. issues semiannual interest, 4 yr 7%, $75,000 par value bonds at $71,964

1.Prepare an amortization table for these bonds; use the straight-line method of interest amortization. 2.Prepare journal entries to record the first two interest payments.2.Prepare the journal entry for maturity of the bonds on December 31, 2020.

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