Heathrow issues $2,000,000 of 6%, 15 year bonds dated January 1, 2011, that pay

Question

Heathrow issues $2,000,000 of 6%, 15 year bonds dated January 1, 2011, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,728,224. Required Determine the total bond interest expense to be recognized over the bonds life. 4. Prepare the first two years of an amortization table like Exhibit 10.7 using the straight line method. Please help mywork is due by 12am so far this is what I have UNAMORTIZAEDDISCOUNT CARRING VALUE 1/14/2011 1,728,224 6/30/2011 12/31/2011 6/30/2012 12/31/2012 1,764,460

Explanation / Answer

Date . . . Expense Discount . Cash . . . . Bonds . . .Discount . Carrying
. . . . . . . . . . . . . . .Amor. . Payment. . Payable . . .Balance. . . Value

1/01/2011 . . . . . . . . . . . . . . . . . . . . 2,000,000 . 271,776 . 1,728,224

6/30/2011 . .69,059 . 9,059 . 60,000 . 2,000,000 . 262,717 . 1,737,283

12/31/2011 .69,059 . 9,059 . 60,000 . 2,000,000 . 253,658 . 1,746,342

6/30/2012 . .69,059 . 9,059 . 60,000 . 2,000,000 . 244,599 . 1,755,401

12/31/2012 .69,059 . 9,059 . 60,000 . 2,000,000 . 235,540 . 1,764,460

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