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Eagle Corporation issued $10,250,000, 6 percent bonds dated April 1, 2018. The market rate of interest was 7 percent, with interest paid each March 31.

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Eagle Corporation issued $10,250,000, 6 percent bonds dated April 1, 2018. The market rate of interest was 7 percent, with interest paid each March 31. The bonds mature in three years, on March 31, 2021. Eagle's fiscal year ends on December 31. Use Table 9C.1. Table 90.2 Required: 1. What was the issue price of these bonds? (Round time value factor to 4 decimal places. Round the final answer to the nearest whole dollar.) Bond issue price 2. Compute the bond interest expense for fiscal year 2018. The company uses the effective-interest method of amortization (Round time value factor to 4 decimal places. Round intermediate and final answer to the nearest whole dollar.) Interest expense 3. Show how the bonds should be reported on the statement of financial position at December 31, 2018 (Round intermediate and final answer to the nearest whole dollar.) EAGLE CORPORATION As of December 31, 2018 Statement of financial position: $ 4. What amount of interest expense will be recorded on March 31, 2019? (Round time value factor to 4 a decimal places. Round the final answer to the nearest dollar amount.) Interest expense 4- b. Is this amount different from the amount of cash that is paid? Yes No

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