80.2K

Verified Solution

Link Copied!

need the answer of this question urgently

Huskey Mining Corporation issued bonds with a par value of $105,000 on January 1, 2020. The annual contract rate on the bonds is 9%, and the interest is paid semiannually. The bonds mature after three years. The annual market interest rate at the date of issuance was 11%, and the bonds were sold for $99,755. a. What is the amount of the original discount on these bonds? Discount $ 5,245 b. How much total bond interest expense will be recognized over the life of these bonds? (Do not round intermediate calculations. Round the final answer to the nearest whole dollar.) Total interest expense c. Present an amortization table for these bonds; use the effective interest method of allocating the interest and amortizing the discount. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar. Enter all the amounts as positive values.) Drox 3 of 8 Next > m. Total interest expense 10 points eBook Print c. Present an amortization table for these bonds; use the effective interest method of allocating the interest and amortizing the discount. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar. Enter all the amounts as positive values.) References Period Ending Cash Interest Paid Period Interest Expense Discount Amortization Unamortized Discount Carrying Value Jan. 1/20 June 30/20 Dec 31/20 June 30/21 Dec. 31/21 June 30/22 0 0 Dec. 31/22 0 0 $ $ 0 $ Totals Next

Answer & Explanation Solved by verified expert

See Answer