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TakeAssignment/takeAssignment Main.doinvokereassignments&takeAssignmentSession Locator assignment-takeinprogress Amortize Premium by Interest Method Shunda Corporation wholesales parts to appliance manufacturers. On January 1, Shunda issued $30,000,000 of five-year, 10% bonds at a market (effective interest rate of 8%, receiving cash of $32,433,150. Interest is payable semiannually. Shunda's fiscal year begins on January 1. The company uses the interest method. .. Journal the entries to record the following: 1. Sale of the bonds. Round to the nearest do a n amount box does not require an entry leave it bank Promo Bonde Benda Payable premium Round to the nearest do a n amount box does not require an entry 2. First semiannual interest payment, including amortization avet blank Interest Expense Premium on Bon Payable 3. Second semiannual terest payment, including amortization of premium. Round to the nearest dollar. If an amount box does not require an Dk My Work Previous 90 ROHO 2015PXO9 190 of premium. Round to the nearest dollar. If an amount box does not require an 3. Second semiannual interest payment induding entry, leave it bank Interest Expense Premium on Bonds Payable Cash b. Determine the bond interest expense for the first year. Round to the nearest dollar Annual interest paid Les premium amortized Interest expense for first year c. Explain why the company was able to see the bonds for $32,433,150 rather than for the face amount of $30,000,000 The bonds sel for more than their face amount because the market rate of interest less than the contract rate of interest. Investors are willing to pay more for bonds that ay higher rate of interest contract rate) than the rate they could eam on similar bonds market rate) Check My Wank Previous 919 2020 20PXOCO9 U MacBook Pro Z UL'TOP N

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