Tano Company issues bonds with a par value of $90,000 on January 1, 2021. The bonds' annual contract rate is 8%, and interest ispaid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is10%, and the bonds are sold for $85,431.1. 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 3How much total bond interest expense will be recognized over the life of these bonds?Total Bond Interest Expense Over Life of Bonds:Amount repaid:payments ofPar value at maturityTotal repaidLess amount borrowedTotal bond interest expense Tano Company issues bonds with a par value of $90,000 on January 1, 2021. The bonds' annual contract rate is 8%, and interest ispaid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is10%, and the bonds are sold for $85,431.1. 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 3Prepare a straight-line amortization table for these bonds.Note: Round your intermediate calculations to the nearest dollar amount.(0)(1)(2)(3)(4)(5)(6)Semiannual Period-End01/01/202106/30/202112/31/202106/30/202212/31/202206/30/202312/31/2023UnamortizedDiscountCarrying Value

Par value of bonds$90,000Less: Proceed received$85,431Discount ($90,000 - $85,431)$4,569

Tano Company issues bonds with a par value of $90,000 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 $85,431. 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.

Tano Company issues bonds with a par value of $90,000 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 $85,431. 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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