Exercise $9-72($Algorithmic$)$

Interest Payments and Interest Expense for Bonds $($Straight Line$)$

On January $1,2020,$ Philips Corporation issued bonds with a total face amount of $$892,000$ and a stated rate of $7\%.$

Required:

Calculate the interest expense for $2020$ if the bonds were sold at par.

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Calculate the interest expense for $2020$ if the bonds were sold at a premium and the straight$-$line premium amortization for $2020$ is $$8,000.$

Calculate the interest expense for $2020$ if the bonds were sold at a discount and the straight$-$line discount amortization for $2020$ is $$6,000.$