Temptation Vacations issues $58 million in bonds on January 1, 2021, that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below:(1)(2)(3)(4)(5) Cash Paid for InterestInterest ExpenseDecrease in Carrying ValueCarrying ValueDate 1/1/2021 $65,279,8056/30/2021$1,740,0001,631,995$108,005$65,279,80512/31/20211,740,0001,629,295$110,70565,171,8006. What is the total cash paid for interest assuming the bonds mature in 20 years? (Enter your answer in dollars, not millions. (i.e., $5.5 million should be entered as 5,500,000)) Total cash interest

Number of half years=Number of years×2=20×2=40 half-years

Answered: Temptation Vacations issues $58 million…

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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Temptation Vacations issues $58 million in bonds on January 1, 2021, that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below:

(1)	(2)	(3)	(4)	(5)
	Cash Paid for Interest	Interest Expense	Decrease in Carrying Value	Carrying Value
Date
1/1/2021				$65,279,805
6/30/2021	$1,740,000	1,631,995	$108,005	$65,279,805
12/31/2021	1,740,000	1,629,295	$110,705	65,171,800

6. What is the total cash paid for interest assuming the bonds mature in 20 years? (Enter your answer in dollars, not millions. (i.e., $5.5 million should be entered as 5,500,000))

Total cash interest

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