Question: Can you please help me with the third part everything is correct open to January 1, 2019 on the third part Return to question 20

Can you please help me with the third part everything is correct open to January 1, 2019 on the third part  Can you please help me with the third part everything is
correct open to January 1, 2019 on the third part Return to
question 20 Exercise 14-9 Straight-Line: Amortization of bond premium LO P3 4.54

Return to question 20 Exercise 14-9 Straight-Line: Amortization of bond premium LO P3 4.54 points Quatro Co. Issues bonds dated January 1, 2019, with a par value of $860,000. 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 8%, and the bonds are sold for $905,068. 1. What is the amount of the premium on these bonds at issuance? 2. How much total bond interest expense will be recognized over the life of these bonds? 3. Prepare a straight-line amortization table for these bonds. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Recured What w ount of the premium on these bonds at issuance? Promium $ 45,068 Recent Required 2 > Return to question 20 Exercise 14-9 Straight-Line: Amortization of bond premium LO P3 4.54 points Quatro Co. Issues bonds dated January 1, 2019, with a par value of $860,000. 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 8%, and the bonds are sold for $905,068. 1. What is the amount of the premium on these bonds at issuance? 2. How much total bond interest expense will be recognized over the life of these bonds? 3. Prepare a straight-line amortization table for these bonds. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How much total bond interest expense will be recognized over the life of these bonds?! Total Bond Interest Expense Over Life of Bonds: Amount repaid 6 payments of $ 43,000 $ Par value at maturity Total repaid Less amount borrowed Total bond interest expense 258,000 860,000 1,118,000 905,068 212932 Required 1 Return to question 20 Exercise 14-9 Straight-Line: Amortization of bond premium LO P3 4.54 Quatro Co. Issues bonds dated January 1, 2019, with a par value of $860,000. 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 8%, and the bonds are sold for $905,068. 1. What is the amount of the premium on these bonds at issuance? 2. How much total bond interest expense will be recognized over the life of these bonds? 3. Prepare a straight-line amortization table for these bonds. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a straight-line amortization table for these bonds. (Round your intermediate calculations to the nearest dollar amount) Semiannual Interest Period Unamortized Premium Carrying Value $ 905,068 897,557 090 045 01/01/2019 06/30/2019 12/31/2019 06/30/2020 12/31/2020 06/30/2021 12/31/2021 34,555 37,567 30.045 22.534 15.023 7,510 2 534 875 023 867,510 860,000 0

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!