Question: I am not 100% sure for required 2 and help me with required 3. thanks! Exercise 14-20B (Algo) Effective Interest: Amortization of bond premium LO


Exercise 14-20B (Algo) Effective Interest: Amortization of bond premium LO P5 Quatro Company issues bonds dated January 1, 2021, with a par value of $890,000. The bonds' annual contract rate is 12%, 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 10%, and the bonds are sold for $935,160. 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 an effective interest amortization table for these bonds. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the amount of the premium on these bonds at issuance? Premium $ 45,160 F Required 2 > Exercise 14-20B (Algo) Effective Interest: Amortization of bond premium LO P5 Quatro Company issues bonds dated January 1, 2021, with a par value of $890,000. The bonds' annual contract rate is 12%, 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 10%, and the bonds are sold for $935,160. 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 an effective interest amortization table for these bonds, Complete this question by entering your answers in the tabs below. Required: Required 2 Required 3 How much total bond interest expense will be recognized over the life of these bonds? Total Bond Interest Expense Over the Life of the Bonds: Amount repaid payments of $ 320400 $ 1922.400 Par value at maturity 800.000 Total repaid 2812,400 Les amount borrowed 935,160 Total bond interest expense s 1,877,240 Exercise 14-20B (Algo) Effective Interest: Amortization of bond premium LO P5 Quatro Company issues bonds dated January 1, 2021, with a par value of $890,000. The bonds' annual contract rate is 12%, 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 10%, and the bonds are sold for $935,160. 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 an effective interest amortization table for these bonds. Complete this question by entering your answers in the tabs below. Required: Required 2 Required 3 Prepare an effective interest amortization table for these bonds. (Round alt amounts to the nearest whole dollar). Cash Interest Bond Interest Paid Expense Premium Amortization Unamortired Premium Carrying Value Semiannual Interest Period-End 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 030/2023 12/31/2023 Total (Required 2
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