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# Exercise 10-2 Straight-Line: Amortization of bond discount LO P2 Tano issues bonds with a par value...

###### Question:

Exercise 10-2 Straight-Line: Amortization of bond discount LO P2 Tano issues bonds with a par value of $92,000 on January 1, 2017 The bonds' annual contract rate is 10 %, 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 12 % , and the bonds are sold for$87.480. 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 an amortization table using the straight-line method to amortize the discount for these bonds. Complete this question by entering your answers in the tabs below. Required 1 Requiregin Required 3 Required 2 What is the amount of the urscournt oh these bonds at issuance? Discount Required 2
Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How 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 of Par value at matunity Total repaid Less amount borrowed Total bond interest expense
Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare an amortization table using the straight-line method to amortize the discount for these bonds. (Round your intermediate calculations to the nearest dollar amount.) Semiannual Period- Unamortized Discount Carrying Value End 01/01/2017 06/30/2017 12/31/2017 06/30/2018 12/31/2018 06/30/2019 12/31/2019

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