A company has $1,378 in inventory, $4,827 in net fixed assets, $664 in accounts receivable, $298 in cash, $626 in accounts payab
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Answer:
1. Total interest rate is $166,790
2. Refer to the attached file for the straight-line amortization table for the bonds' life.
3.
To record interest rate paid in 30th June 2018:
Dr Interest expenses 16,679
Dr Premium on bond payable 4,521
Cr Cash 21,200
To record interest rate paid in 31st Dec 2018:
Dr Interest expenses 16,679
Dr Premium on bond payable 4,521
Cr Cash 21,200
Explanation:
Total interest rate as followed : Interest payment - Premium on bond payable = 530,000 x 8% /2 x 10 - (575,210 - 530,000) =166,790.
