Quatro Company issues bonds dated January 1, 2021, with a par value of $890,000. The bonds'...

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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 Prepare an effective interest amortization table for these bonds. Note: Round all amounts to the nearest whole dollar. Semiannual Interest Period-End Cash Interest Paid Bond Interest Expense Premium Amortization Unamortized Premium Carrying Value 01/01/2021 $ 45,160 $ 935,160 06/30/2021 $ 53,400 $ 46,761 $ 6,639 38,521 947,633 12/31/2021 53,400 46,429 6,971 31,549 921,549 06/30/2022 53,400 46,080 7,320 24,230 914,229 12/31/2022 53,400 45,714 7,686 16,544 906,543 06/30/2023 53,400 45,330 8,069 8,474 898,474 12/31/2023 53,400 44,926 8,474 0 890,000 Total $ 320,400 $ 275,240 $ 45,160 < Required 2 Required 3 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 Prepare an effective interest amortization table for these bonds. Note: Round all amounts to the nearest whole dollar. Semiannual Interest Period-End Cash Interest Paid Bond Interest Expense Premium Amortization Unamortized Premium Carrying Value 01/01/2021 $ 45,160 $ 935,160 06/30/2021 $ 53,400 $ 46,761 $ 6,639 38,521 947,633 12/31/2021 53,400 46,429 6,971 31,549 921,549 06/30/2022 53,400 46,080 7,320 24,230 914,229 12/31/2022 53,400 45,714 7,686 16,544 906,543 06/30/2023 53,400 45,330 8,069 8,474 898,474 12/31/2023 53,400 44,926 8,474 0 890,000 Total $ 320,400 $ 275,240 $ 45,160 < Required 2 Required 3

Answer rating: 100% (QA)

1 The amount of the premium on these bonds at issuance is 451... View the full answer