11.

On January 1, 2013, Learned, Inc., issued $11 million face amount of 20-year, 14% stated rate bonds when market interest rates were 16%. The bonds pay interest semiannually each June 30 and December 31 and mature on December 31, 2032.Table 6-4,Table 6-5(Use appropriate factor from the table provided.)

b.1

Assume instead that the proceeds were $11,500,000. Use the horizontal model to record the payment of semiannual interest and the related premium amortization on June 30, 2013, assuming that the premium of $500,000 is amortized on a straight-line basis.(Enter decreases to account balances with a minus sign.) Balance Sheet Income statement Assets=Liabilities+Stakeholders Equity Net Income = Revenue-Expenses ________=_________+___________ _______=_________-_______________