b. The interest payment on June 30, Year 2, and the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.) Interest Expense Premium on Bonds Payable Cash & Feedback Check My Work Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account The straight line method of amortization provides equal amounts of amortization over the life of the bond. Leaming objective 2. Datamine the 3. Determine the total interest expense for Year 1. Round to the nearest dollar. 3,625,986 X 4. Will the bond proceeds always be greater than the face amount of the bonds when the contract rate is greater than the market rate of interest? Yes y S. Compute the price of $95,870,509 received for the bonds by using Exhibit 5 and Exhibit 7. (Round to the nearest dollar) Your total may vary slightly from the price given due to rounding differences Present value of the face amount Present value of the semi-annual interest payments Price received for the bonds b. The interest payment on June 30, Year 2, and the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.) Interest Expense Premium on Bonds Payable Cash & Feedback Check My Work Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account The straight line method of amortization provides equal amounts of amortization over the life of the bond. Leaming objective 2. Datamine the 3. Determine the total interest expense for Year 1. Round to the nearest dollar. 3,625,986 X 4. Will the bond proceeds always be greater than the face amount of the bonds when the contract rate is greater than the market rate of interest? Yes y S. Compute the price of $95,870,509 received for the bonds by using Exhibit 5 and Exhibit 7. (Round to the nearest dollar) Your total may vary slightly from the price given due to rounding differences Present value of the face amount Present value of the semi-annual interest payments Price received for the bonds