Interest Payments and Interest Expense for Bonds (Straight Line)

On January 1, Perry Manufacturing issued bonds with a total face amount of $786,000 and a stated rate of 7%. Interest is payable annually on December 31.

Required:

1. Calculate the interest expense for the first year if the bonds were sold at par. $fill in the blank 1

2. Calculate the interest expense for the first year if the bonds were sold at a premium and the straightline premium amortization is $8,000. $fill in the blank 2

3. Calculate the interest expense for the first year if the bonds were sold at a discount and the straightline discount amortization is $6,000. $fill in the blank 3