er 14 Homework Assignment Saved On January 1, a company issued 5%, 10-year bonds

Question

er 14 Homework Assignment Saved On January 1, a company issued 5%, 10-year bonds with a face amount of $60 million for $55,537,005 to yield 6%. Int semiannually. What was the interest expense at the effective interest rate on the December 31 annual income statement? (E answers in whole dollars. Round your intermediate calculations to the nearest dollar amount.) erest is paid nter your Cash Interest Bond Interest Discount Carmying Value Period-End Paid January 1 S 55,537,005 June 30 $ 1,500,000 1,500,000 December 31 Total Reference links ding Bonds at isguance

Explanation / Answer

Period end Cash interest paid Bond interest expense Discount amortization Carrying value Jan-01 55537005 Jun-30 1500000 1666110 166110 55703115 Dec-31 1500000 1671093 171093 55874208 Total 3337203

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