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On April 1, 2018, Millwood Inc. issued ten-year bonds. The bonds have a face value...

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Accounting

On April 1, 2018, Millwood Inc. issued ten-year bonds. The bonds have a face value of $500,000 and a stated interest rate of 6%, payable semiannually on October 1 and April 1 beginning on October 1, 2018. The bonds were issued when the market rate was 4%. Millwood uses the straight-line amortization method.

Build and present the amortization table

What will be the total interest cost over the entire life of the bonds?

How much interest expense should be recognized in 2018? Round to the nearest whole dollar

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