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Tano issues bonds with a par value of $80,000 on January 1, 2015 the bonds and...

Tano issues bonds with a par value of $80,000 on January 1, 2015 the bonds and only contract rate is 8% and interest is paid semi annually on June 30 and December 31 bonds mature in three years the venue market rate at the date of insurance is 10% in the bonds are sold for $75,938.
1.What is the amount of the discount on 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 using the straight line method to amortize the discount for these bonds
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Answer #1

Answer to Part 1.

Amount of the Discount at the Issuance = Face Value of Bonds - Sale Value of Bond
Amount of the Discount at the Issuance = $80,000 - $75,938
Amount of the Discount at the Issuance = $4,062

Answer to Part 2.

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