Solution-Calculate total bond interest expense over the

Calculate total bond interest expense over the bonds life

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Reference no: EM131534791

Question: Zooba Company issues 9%, five-year bonds dated January 1, 2011, with a $160,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $166,494. Their annual market rate is 8% on the issue date.

Required: 1. Calculate the total bond interest expense over the bonds' life.

2. Prepare a straight-line amortization table like Exhibit for the bonds' life.

3. Prepare the journal entries to record the first two interest payments.

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Reference no: EM131534791

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Calculate total bond interest expense over the bonds life

Reference no: EM131534791

Reference no: EM131534791

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