Determine discount on bonds payable at date of issuance

Reference no: EM13744790

On January 1, 2014, Jack Company issues $4,717,000, 7%, 10-year bonds for cash of $3,835,239 when the market rate of interest is 10%. The bonds pay interest semi-annually on June 30 and December 31. Determine (1) the discount on bonds payable at the date of issuance, (2) the semi-annual cash interest payment, (3) the semi-annual discount amortization using the straight line method, and (4) the semi-annual interest expense.

Reference no: EM13744790

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