Exercise 10-9 (Static) Straight-Line: Amortization of bond premium LO P3

Quatro Co. issues bonds dated January 1, 2020, with a par value of $400,000. The bonds annual contract rate is 13%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 12%, and the bonds are sold for $409,850. Prepare a straight-line amortization table for these bonds.

Exercise 10-9 (Static) Straight-Line: Amortization of bond premium LO P3 Quatro Co. issues bonds dated January 1, 2020, with a par value of $400,000. The bonds' annual contract rate is 13%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 12%, and the bonds are sold for $409,850. 1. What is the amount of the premium on these bonds at issuance? 2. How much total bond interest expense will be recognized over the life of these bonds? 3. Prepare a straight-line amortization table for these bonds. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a straight-line amortization table for these bonds. (Round your intermediate calculations to the nearest dollar amount.) Semiannual Interest Period-End Unamortized Premium Carrying Value 01/01/2020 06/30/2020 12/31/2020 06/30/2021 12/31/2021 06/30/2022 12/31/2022