## Answers

**Answers :**

**A) $93,120**

**B) $18,441**

A) Cash interest on the Bond = 1,940,000*10%*6/12 = $97,000

Premium on Bond sPayable = 1,940,000*0.04 = 77,600

Semiannual bond Premium Amorixed = 77,600/(10*2) = 3,880

Interest Expenses = Cash interest - Premium amortized = 97,000-3,880 = **$93,120 (Answer)**

**Interest Expenses REcord on July1 and December 31 =$93,120**

B) Interset Expenses on Bond

= 553,237*10%*4/12 = **$18,441**

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