Stinson Corporation issued $520,000 of 5​%, 10​-year bonds payable on March​ 31, 2019. The market interest rate at the date of issuance was 9​%, and the bonds pay interest semiannually. Stinson ​Corporation's year-end is March 31. Review the following amortization table for Stinson​'s ​bonds: Using the amortization table for Stinson​'s ​bonds, answer the questions​below:   Semiannual      Interest       Interest    Discount        Discount  Bond          Interest Date   Payment      Expense   Amortization  Balance  Carying Amt Mar 31, 2019                                                          $ 135,283    384,717 Sep 30, 2019 $     13,000  $  17,312  $       4,312       130,971    389,029 Mar 31, 2020        13,000      17,506           4,506        126,465  393,535 Sep 30, 2020        13, 000    17,709           4,709       121,756     398,244 1 How much cash did Stinson Corporation borrow on March​ 31, 2019​? How much cash will the company pay back at maturity on March​ 31, 2029​? 2 How much cash interest will the company pay each six​ months? 3 How much interest expense will Stinson Corporation report on September​ 30, 2019​, and on March​ 31, 2020​? Why does the amount of interest expense increase each​ period?

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Stinson Corporation issued $520,000 of 5​%, 10​-year bonds payable on March​ 31, 2019. The market interest rate at the date of issuance was 9​%, and the bonds pay interest semiannually. Stinson ​Corporation's year-end is March 31. Review the following amortization table for Stinson​'s ​bonds:
Using the amortization table for Stinson​'s ​bonds, answer the questions​below:
 
Semiannual      Interest       Interest    Discount        Discount  Bond          Interest Date   Payment      Expense   Amortization  Balance  Carying Amt
Mar 31, 2019                                                          $ 135,283    384,717
Sep 30, 2019 $     13,000  $  17,312  $       4,312       130,971    389,029
Mar 31, 2020        13,000      17,506           4,506        126,465  393,535
Sep 30, 2020        13, 000    17,709           4,709       121,756     398,244
1
How much cash did Stinson Corporation borrow on March​ 31, 2019​?
How much cash will the company pay back at maturity on March​ 31,
2029​?
2
How much cash interest will the company pay each six​ months?
3
How much interest expense will Stinson Corporation report on September​ 30, 2019​, and on March​ 31, 2020​? Why does the amount of interest expense increase each​ period?
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