Quatro Co. issues bonds dated January 1, 2015, with a par value of $850,000. 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 $893,131.

Premium S 43,131 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: 51,000 306,000 6 payments of 850,000 Par value at maturity Total repaid 1,156,000 Less amount borrowed 893,131 262,869 Total bond interest expense Prepare an amortization table for these bonds; use the straight-line method to amortize the premium. (Round your intermediate calculations to the nearest dollar amount.) Semiannual Period Unamortized Carrying End Premium 01/01/2015 43,131 893,131 06/30/2015 36,788 886,788 880,127 12/31/2015 30,127 23,133 06/30/2016 873,133 12/31/2016 865,790 15,790 858,604 06/30/2017 8,604 0 12/31/2017 850,000