Bonds issued at discount or premium
On March 31,2018 Louis Company issued $20,000,000 face amount of 7%,5-year bonds payable,with interest payable each June 30 and December 31.The company received cash of $20,200,000,including the accrued interest from December 31,2017.Louis uses the straight-line method of amortizing any discount or premium over the remaining life of the bonds - 57 months.
(a)What was the amount of accrued interest received by Louis on March 31,2018 when the bonds were issued? (Do not assume the bonds were issued at par. )
$________
(b)What was the amount of discount or premium on the bonds at issuance date?
(Indicate discount or premium. )
$________
(c)What amount of cash is paid to bondholders for interest during year 2018?
$________
(d)What is Louis ' total interest expense for year 2018 related to this bond issue?
$________
(e)What is the carrying value of this bond issue as of December 31,2018?
$________

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The Answer of Bonds issued at discount or premium
On March 31,2018 Louis Company issued $20,000,000 face amount of 7%,5-year bonds payable,with interest payable each June 30 and December 31.The company received cash of $20,200,000,including the accrued interest from December 31,2017.Louis uses the straight-line method of amortizing any discount or premium over the remaining life of the bonds - 57 months.
(a)What was the amount of accrued interest received by Louis on March 31,2018 when the bonds were issued? (Do not assume the bonds were issued at par. )
$________
(b)What was the amount of discount or premium on the bonds at issuance date?
(Indicate discount or premium. )
$________
(c)What amount of cash is paid to bondholders for interest during year 2018?
$________
(d)What is Louis ' total interest expense for year 2018 related to this bond issue?
$________
(e)What is the carrying value of this bond issue as of December 31,2018?
$________

Bonds Issued at Discount or Premium