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not sure if my answers are correct, also cant figure out how to do requirement 3. thank you! Exercise 10-4 Straight-Line: Amortization of bond discount

not sure if my answers are correct, also cant figure out how to do requirement 3. thank you! image text in transcribed
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Exercise 10-4 Straight-Line: Amortization of bond discount LO P2 Tano Company issues bonds with a par value of $86,000 on January 1, 2019. The bonds' annual contract rate is 6%, 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 8%, and the bonds are sold for $81,490. 1. What is the amount of the discount 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 What is the amount of the discount on these bonds at issuance? Discount S 4,510 Required 2 > Exercise 10-4 Straight-Line: Amortization of bond discount LO P2 Tano Company issues bonds with a par value of $86,000 on January 1, 2019. The bonds' annual contract rate is 6%, 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 8%, and the bonds are sold for $81,490. 1. What is the amount of the discount 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 How much total bond interest expense will be recognized over the life of these bonds? Total Bond Interest Expense Over Life of Bonds: Amount repaid 6 payments of $ 2,580 $ 15,480 Par value at maturity 86,000 Total repaid 101,480 Less amount borrowed 81,490 Total bond interest expense $ 19,990 Exercise 10-4 Straight-Line: Amortization of bond discount LO P2 Tano Company issues bonds with a par value of $86,000 on January 1, 2019. The bonds' annual contract rate is 6%, 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 8%, and the bonds are sold for $81,490. 1. What is the amount of the discount 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 Reggired 3 Prepare a straight-line amortization table for these bonds. (Round your intermediate calculations to the nearest dollar amount.) Carrying Value Semiannual Period. Unamortized End Discount 01/01/2019 06/30/2019 12/31/2019 06/30/2020 12/31/2020 06/30/2021 12/31/2021

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