Quatro Co. issues bonds dated January 1, 2019, with a par value of $800,000. The...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Quatro Co. issues bonds dated January 1, 2019, with a par value of $800,000. The bonds' annual contract rate is 13%, 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 12%, and the bonds are sold for $819,700. 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. Required 1 Required 2 Required 3 Prepare an effective interest amortization table for these bonds. (Round all amounts to the nearest whole dollar.) Semiannual Interest Period-End Cash Interest Paid Bond Interest Expense Premium Amortization Unamortized Premium Carrying Value 01/01/2019 $ 19,700 $ 06/30/2019 $ 819,700 816,417 813,134 12/31/2019 06/30/2020 12/31/2020 52,000 52,000 52,000 52,000 52,000 52,000 312,000 $ 06/30/2021 12/31/2021 52,000 292,300 $ Total $ 19,700
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
