Quatro Co. issues bonds dated January 1, 2017, with a par value of $850,000. The bonds annual contract rate is 12%, 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 10%, and the bonds are sold for $893,131. 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 an amortization table for these bonds using the effective interest method to amortize the premium. Complete this question by entering your answers in the tabs below.

What is the amount of the premium on these bonds at issuance?

Premium

$

How much total bond interest expense will be recognized over the life of these bonds?

Total Bond Interest Expense Over the Life of the Bonds:
Amount repaid:
	payments of
Par value at maturity
Total repaid			0
Less amount borrowed
Total bond interest expense			$0

Prepare an amortization table for these bonds using the effective interest method to amortize the premium. (Round all amounts to the nearest whole dollar.)

Semiannual Interest Period-End	Cash Interest Paid	Bond Interest Expense	Premium Amortization	Unamortized Premium	Carrying Value
01/01/2017
06/30/2017
12/31/2017
06/30/2018
12/31/2018
06/30/2019
12/31/2019
Total