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What is the total amount of bond interest expense

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Q1. Bellevue Marketin corp. issued $600,000 of %6, four-year bonds for $579,224 on July 1, 2020. the day the bond were dated. The market interest rate on this date was %7. Interest is paid quarterly beginning October 1, 2020. Bellevue uses the effective interest method to amortize bond discount and premiums. Record the issuance of the bonds and the first payment of interest.

Q2. Alberta Industries Ltd. issued %10, 10 years bonds with a par value of $200,000 and semiannual interest payments. On the issue date, the annual market rate of interest for the bonds was %12, and the selling price was $177,059. The effective interest method is used to allocate the interest.

a. What is the total amount of bond interest expense that will be recognized over the life of the bonds?

b. What is the total bond interest expense recorded on the first interest payment date?

Reference no: EM133025764

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