Determine the total amount of interest expenses

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Question 1 - On April 1, 2018, a corporation issued $3,000,000, 8%, 10-year bonds at 95. The bonds pay interest each June 31 and December 31 and the corporation uses the straight-line method to amortize premium or discount. Prepare entries for the issue of the bonds and for the first interest payment.

Question 2 - Determine the total amount of interest expenses over the life of the bonds payable for the following independent situations:

a. A company issues $100,000 of 10%, 10-year bonds at 101.

b. A company issues $240,000 of 5%, 5-year bonds at 100.

c. A company issues $300,000 of 9%, 6-year bonds at 98.

Reference no: EM132478413

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