(d)What will be the total interest payments over the five-year life of the bonds? Total interest expense?Total interest paymentsTotal interest expense Sheridan Corporation issued $430,000 of 5-year bonds on April 1, 2023. Interest is paid semi-annually on April 1 and October 1. Below is a partial amortization schedule for the first few years of thebond issue.Semi-AnnualInterest PeriodApr 1, 2023Oct. 1, 2023Apr. 1, 2024Oct. 1.2024Apr. 1, 2025Oct 1, 2025Apr. 1, 2026Interest InterestPayment Expense$8.6008.6008.6008,6008.6008,600$6,7476.7206.6916,6636.6346.604Amortization$1,8531,8801,9091,9371.9661.996CarryingAmount of Bonds$449,828447,975446,095444,186442.249440,283438,287

Bonds payable are a long-term liabilities which are issued by the company for a fixed tenure to…

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What will be the total interest payments over the five-year life of the bonds? Total interest expense? Total interest payments Total interest expense

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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Question

(d)
What will be the total interest payments over the five-year life of the bonds? Total interest expense?
Total interest payments
Total interest expense

Sheridan Corporation issued $430,000 of 5-year bonds on April 1, 2023. Interest is paid semi-annually on April 1 and October 1. Below is a partial amortization schedule for the first few years of the
bond issue.
Semi-Annual
Interest Period
Apr 1, 2023
Oct. 1, 2023
Apr. 1, 2024
Oct. 1.2024
Apr. 1, 2025
Oct 1, 2025
Apr. 1, 2026
Interest Interest
Payment Expense
$8.600
8.600
8.600
8,600
8.600
8,600
$6,747
6.720
6.691
6,663
6.634
6.604
Amortization
$1,853
1,880
1,909
1,937
1.966
1.996
Carrying
Amount of Bonds
$449,828
447,975
446,095
444,186
442.249
440,283
438,287

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