Exercise 14-4 (Algo) Straight-Line: Amortization of bond discount LO P2 Tano Company issues bonds with a par value of $94,000 on January 1, 2021. The bonds' annual contract rate is 6%, 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 8%, and the bonds are sold for $89,071. 1. What is the amount of the discount on these bonds at issuance? 2. How much total bond interest expense will be recognized over the life of these bonds? 3. Prepare a straight-line amortization table for these bonds. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a straight-line amortization table for these bonds. Note: Round your intermediate calculations to the nearest dollar amount.

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Exercise 14-4 (Algo) Straight-Line: Amortization of bond discount LO P2
Tano Company issues bonds with a par value of $94,000 on January 1, 2021. The bonds' annual contract rate is 6%, 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
8%, and the bonds are sold for $89,071.
1. What is the amount of the discount on these bonds at issuance?
2. How much total bond interest expense will be recognized over the life of these bonds?
3. Prepare a straight-line amortization table for these bonds.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3
Prepare a straight-line amortization table for these bonds.
Note: Round your intermediate calculations to the nearest dollar amount.
Carrying Value
(0)
(1)
(2)
(3)
(4)
(5)
(6)
Semiannual Period-End
01/01/2021
06/30/2021
12/31/2021
06/30/2022
12/31/2022
06/30/2023
12/31/2023
$
Unamortized
Discount
4,929
< Required 2
Required 3 >
Transcribed Image Text:Exercise 14-4 (Algo) Straight-Line: Amortization of bond discount LO P2 Tano Company issues bonds with a par value of $94,000 on January 1, 2021. The bonds' annual contract rate is 6%, 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 8%, and the bonds are sold for $89,071. 1. What is the amount of the discount on these bonds at issuance? 2. How much total bond interest expense will be recognized over the life of these bonds? 3. Prepare a straight-line amortization table for these bonds. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a straight-line amortization table for these bonds. Note: Round your intermediate calculations to the nearest dollar amount. Carrying Value (0) (1) (2) (3) (4) (5) (6) Semiannual Period-End 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 06/30/2023 12/31/2023 $ Unamortized Discount 4,929 < Required 2 Required 3 >
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