Quatro Company issues bonds dated January 1, 2021, with a par value of $790,000. The bonds' annual contract rate is 9%, 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 $810,694. 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 effective interest 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 premium on these bonds at issuance? Premium $ 20,694 Rautres Required 2 > Quatro Company issues bonds dated January 1, 2021, with a par value of $790,000. The bonds' annual contract rate is 9%, 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 $810,694 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 effective interest 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 the Life of the Bonds: Amount repaid 6 payments of $ 35,550 $ 213,300 Par value at maturity 790,000 Total repaid 1,003,300 Less amount borrowed 810,694 Total bond interest expense $ 192,606 Quatro Company issues bonds dated January 1, 2021, with a par value of $790,000. The bonds' annual contract rate is 9%, 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 $810,694 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 effective interest amortization table for these bonds. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare an effective interest amortization table for these bonds. (Round all amounts to the nearest whole dollar.) Cash Interest Bond Interest Paid Expense Premium Amortization Unamortized Promlum Carrying Value $ 20,694 $ 810,694 $ 32.427 Semiannual Interest Period-End 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 06/30/2023 12/31/2023 Total 35,550 $ 35,550 35,550 35,550 35,5501 35,550 213,300 $ 35,550 192,606 $ $ 20,694
