On January 1, 2010, Huber Co. sold 12% bonds with a face value of $600,000. The bonds mature in five years, and interest is to be paid semiannually. The bonds were sold for $646,328 to yield 10%. Determine the total interest expense for Huber over the life of these bonds.

 

1.    2)

2.    Hershner Company received proceeds of $188,500 on 10-year, 8% bonds issued on January 1, 2013. The bonds have a face value of $200,000, pay interest semi-annually on June 30 and December 31. Determine the interest expense recorded by Hershner Company on June 30, 2013.

3)

1.    Reliable Company issued 6%, 5 year bonds paying semiannual interest. The bonds had a par value of $250,000, and were issued at a price of 96.5. What will be Reliable Company’s Total Interest Expense over the life of the bonds?

4)

1.    Chen Company issues bonds with a par value of $800,000 on their issue date for $735,464. The bonds mature in 5 years and pay 6% annual interest in semiannual payments. On the issue date, the market rate of interest (annual) is 8%. Compute the total interest expense for Chen Company over the life of the bonds.

5)

1.    On January 1, 2013, Schibler Company issued 10 year bonds with a coupon interest rate of 10 percent and face amount of $150,000. The bonds were issued for $132,900. Schibler Company uses the straight-line method of amortizing bond discounts. Interest is payable semiannually on June 30 and January 1. What amount of interest expense should the company report on June 30, 2013?