Prairie dunes company issues bonds dated january 1 2011, Ask an Expert

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Prairie Dunes Company issues bonds dated January 1, 2011, with a par value of $800,000. The annual contract rate is 13%, 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 $819,700.

1.How much total bond interest expense will be recognized over the life of these bonds?
2. Prepare an amortization table ,use the straight-line method to amortize the premium.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9975593

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