On
January 1, 2018, "ABC" Company issued $200,000, 10%, 4 years
callable bonds at 105, which pay interest semi-annually on June 30,
and December 31. The bonds were sold for $187,580.41, since the
market was 12%. In addition, On July 1, 2019, the company issued
ad- ditional bonds with a face value of $400,000 that mature on
June 30, 2029 for $427,355.48, since the market rate was 8%. The
new bonds are non-callable bonds that has a stated rate of 9%
payable every 3 months on March 31, June 30, September 30, and
December 31. Moreover, on July 1, 2020, "ABC" Company called 30% of
its outstanding bonds.
١: What is the amount of interest expense that must be
presented on "ABC" Company income statement for the year ended
December, 31, 2018?
٢: What is the amount of interest expense that must be
presented on "ABC" Company income statement for the year ended
December, 31, 2019
٣: What is the amount of interest expense that must be
presented on "ABC" Company income statement for the year ended
December, 31, 2020?
٤: In the space below, show the presentation on the current
and non-current liability on the statement of financial position as
on 31/12/2020