Calculate the interest expense and premium on bond payable

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Company issued 12% bonds with a par value of $800,000 due in 20 years. They were issued at 98 and were callable at 104 at any date after June 30, 2017. Because of lower interest rates and a significant change in the company's credit rating, it was decided to call the entire issue on June 30, 2018, and to issue new bonds. New 10% bonds were sold in the amount of $1,000,000 at 102; they mature in 20 years. County Company uses straight-line amortization. Interest payment dates are December 31 and June 30

Question 1: How do calculate the amount of discount on bond payable ,and loss on redemption on bond payable

Question 2: how can calculate the interest expense and premium on bond payable

Reference no: EM132475735

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