On July 31, 2021, Hummbug Corporation issued $100,000, 5%, 20-year bonds for $113,678, when the market interest rate was 4%. The bonds pay semi-annual interest on July 31 and January 31. Hummbug uses the straight-line method to amortize its bond discount or premium, and it has a January 31 year-end. How much interest expense from these bonds is recorded in Hummbug's financial statements for the year ended January 31, 2022?

Answer rating: 100% (QA)

Solution To calculate the interest expense for the year ended January 31 20... View the full answer