Question
Temptation Vacations issues $46 million in bonds on January 1, 2015, that pay interest semiannually on June 30 and December 31. Portions of the bond
Temptation Vacations issues $46 million in bonds on January 1, 2015, that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below: |
| (1) | (2) | (3) | (4) | (5) | ||||||||
| Date | Cash Paid for Interest | Interest Expense | Decrease in Carrying Value | Carrying Value | ||||||||
| 1/1/2015 | $51,773,639 | |||||||||||
| 6/30/2015 | $1,380,000 | $1,294,341 | $85,659 | 51,687,980 | ||||||||
| 12/31/2015 | 1,380,000 | 1,292,200 | 87,800 | 51,600,180 | ||||||||
Face amount Discount Premium
What is the total cash interest paid over the term to maturity if the term of the bond is 20 years? | ||||||||||||
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Financial Accounting
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
3rd edition
9780077506902, 78025540, 77506901, 978-0078025549
