On July 1, 2012, RC sold two of its $10,000, 9%, bonds payable at an effective interest rate of 8%.Interest is paid each June 30 and the bond matures in six years on June 30, 2018.Round all amounts to the nearest dollar.
(a)What was the amount of the premium $ ________ or discount $ ?
(b)The income statement for the accounting year ended December 31, 2012, should report interest expense of, assuming:
(1)Straight-line amortization, $ .
(2)Interest-method amortization, $ _.

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The Answer of On July 1, 2012, RC sold two of its $10,000, 9%, bonds payable at an effective interest rate of 8%.Interest is paid each June 30 and the bond matures in six years on June 30, 2018.Round all amounts to the nearest dollar.
(a)What was the amount of the premium $ ________ or discount $ ?
(b)The income statement for the accounting year ended December 31, 2012, should report interest expense of, assuming:
(1)Straight-line amortization, $ .
(2)Interest-method amortization, $ _.

On July 1, 2012, RC Sold Two of Its $10,000