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E11-13 A partial bond amortization schedule follows for Hwee Corporation: Semi-Annual Interest Interest Discount/Premium Unamortized Bond Carrying Interest Period Payment Expense Amortization Discount/Premium Amount $74,387

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E11-13 A partial bond amortization schedule follows for Hwee Corporation: Semi-Annual Interest Interest Discount/Premium Unamortized Bond Carrying Interest Period Payment Expense Amortization Discount/Premium Amount $74,387 $925,613 Issue date (Oct. 31) 1 (Apr. 30) $25,000 [1] $2,768 [2] 928,381 2 (Oct. 31) 25,000 $27,851 [3] 68,768 [4] 3 (Apr. 30) [5] 27,937 [6] [7] 934,169 Instructions (a) Fill in the missing amounts for items [1] to [7]. (b) What is the face value of the bonds? Were the bonds issued at a discount or at a premium? (d) What is the coupon interest rate on the bonds? The market interest rate? (e) Explain why interest expense is greater than interest paid. (f) Explain why interest expense will increase each period. (g) What will be the bonds' carrying amount on their maturity date

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