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Stanford issues bonds dated January 1, 2015, with a par value of $260,000. The bonds...

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Accounting

Stanford issues bonds dated January 1, 2015, with a par value of $260,000. The bonds annual contract rate is 9%, 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 $240,832.
1.

What is the amount of the discount on these bonds at issuance?

2.

How much total bond interest expense will be recognized over the life of these bonds?

3.

Prepare an Amortization table using the effective interest method to amortize the discount for these bonds. (Enter all amounts positive values. Round all amounts to the nearest whole dollar.)

Semiannual Interest Period-End Cash Interest Paid Bond Interest Expense Discount Amortization Unamortized Discount Carrying Value
01/01/2015
06/30/2015
12/31/2015
06/30/2016
12/31/2016
06/30/2017
12/31/2017
Total

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