Exercise $9-72$

Interest Payments and Interest Expense for Bonds $($Straight Line$)$

On January $1,2020,$ Perry Manufacturing issued bonds with a total face amount of $$3,000,000$ and a stated rate of $9\%.$

Required:

Calculate the interest expense for $2020$ if the bonds were sold at par.

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Calculate the interest expense for $2020$ if the bonds were sold at a premium and the straight$-$line premium amortization for $2020$ is $$12,000.$

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Calculate the interest expense for $2020$ if the bonds were sold at a discount and the straight$-$line discount amortization for $2020$ is $$33,000.$

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