Calculate the interest expense if the bonds were sold

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INTEREST PAYMENTS AND INTEREST EXPENSE FOR BONDS (STRAIGHT LINE)

On December 31, 2007, Philips Corporation issued bonds with a total face amount of $800,000 and a stated rate of 9 percent.

Required:

1. Calculate the interest expense for 2008 if the bonds were sold at par.

2. Calculate the interest expense for 2008 if the bonds were sold at a premium and the straight-line premium amortization for 2008 is $2,300.

3. Calculate the interest expense for 2008 if the bonds were sold at a discount and the straight-line discount amortization for 2008 is $1,700.

Reference no: EM13938055

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