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Interest Payments and Interest Expense for Bonds (Straight Line)
On December 31, 2013, Perry Manufacturing issued bonds with a total face amount of $3,000,000 and a stated rate of 9%.
Required:
1) Calculate the interest expense for 2014 if the bonds were sold at a premium and the straight-line premium amortization for 2014 is $12,000.
2) Calculate the interest expense for 2014 if the bonds were sold at a discount and the straight-line discount amortization for 2014 is $33,000.
Answer & Explanation
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