1)

On January 1, 2010, Huber Co. sold 12% bonds with a face value of $600,000. The bonds mature in five years, and interest is to be paid semiannually. The bonds were sold for $646,328 to yield 10%. Determine the total interest expense for Huber over the life of these bonds.

1. 2)
2. HershnerCompanyreceivedproceedsof$188,500on10-year,8%bondsissuedonJanuary1,2013.Thebondshaveafacevalueof$200,000,payinterestsemi-annuallyonJune30andDecember31.DeterminetheinterestexpenserecordedbyHershnerCompanyonJune30,2013.

3)

1. ReliableCompanyissued6%,5yearbondspayingsemiannualinterest.Thebondshadaparvalueof$250,000,andwereissuedatapriceof96.5.WhatwillbeReliableCompanysTotalInterestExpenseoverthelifeofthebonds?

4)

1. ChenCompanyissuesbondswithaparvalueof$800,000ontheirissuedatefor$735,464.Thebondsmaturein5yearsandpay6%annualinterestinsemiannualpayments.Ontheissuedate,themarketrateofinterest(annual)is8%.ComputethetotalinterestexpenseforChenCompanyoverthelifeofthebonds.

5)

1. On January 1, 2013, Schibler Company issued 10 year bonds with a coupon interest rate of 10 percent and face amount of $150,000. The bonds were issued for $132,900. Schibler Company uses the straight-line method of amortizing bond discounts. Interest is payable semiannually on June 30 and January 1. What amount of interest expense should the company report on June 30, 2013?