Tano Company issues bonds with a par value of $180,000 on January 1, 2021. The bonds' annual contract rate is 8%, 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 10%, and the bonds are sold for $170,862. 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. Semiannual Period- End (0) 01/01/2021 (1) 06/30/2021 (2) 12/31/2021 (3) 06/30/2022 (4) 12/31/2022 (5) 06/30/2023 (6) 12/31/2023 Unamortized Discount Carrying Value $ 9,138 $ 170,862 < Required 2 Required 3 >
Tano Company issues bonds with a par value of $180,000 on January 1, 2021. The bonds' annual contract rate is 8%, 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 10%, and the bonds are sold for $170,862. 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. Semiannual Period- End (0) 01/01/2021 (1) 06/30/2021 (2) 12/31/2021 (3) 06/30/2022 (4) 12/31/2022 (5) 06/30/2023 (6) 12/31/2023 Unamortized Discount Carrying Value $ 9,138 $ 170,862 < Required 2 Required 3 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A1 please help.....
Transcribed Image Text:Tano Company issues bonds with a par value of $180,000 on January 1, 2021. The bonds' annual contract rate is 8%, 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
10%, and the bonds are sold for $170,862.
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.
Semiannual Period-
End
(0)
01/01/2021
(1)
06/30/2021
(2)
12/31/2021
(3)
06/30/2022
(4)
12/31/2022
(5)
06/30/2023
(6)
12/31/2023
Unamortized
Discount
Carrying Value
$
9,138
$ 170,862
< Required 2
Required 3 >
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