itidivel interest rate of 13 resulting in ain company receiv

itidivel interest rate of 13%, resulting in ain company receiving cash of $11.604,257 3. Second semiannual interest payment. The bond discount

Solution

Cash 11694257 Discount on Bonds payable 905743        Bonds payable 12600000 Interest expense 783574       Discount on Bonds payable 90574       Cash 693000 Interest expense 783574       Discount on Bonds payable 90574       Cash 693000 b Bond interest expense = 783574+783574= 1567148