On April 1, Everjoy Company purchased $30,000 of Miller Corporation's 8% bonds at a purchase price of 95. Everjoy Company, whose year end is December 31, expects to hold the bonds until their maturity date 5 years from the date of purchase. Interest on the bonds will be paid every April 1 and October 1 until maturity. Assuming the premium or discount is amortized every interest payment date using straight- line amortization, how much cash will Everjoy receive and how much total interest revenue will Everjoy Company report relative to the October 1 interest payment?

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The Answer of On April 1, Everjoy Company purchased $30,000 of Miller Corporation's 8% bonds at a purchase price of 95. Everjoy Company, whose year end is December 31, expects to hold the bonds until their maturity date 5 years from the date of purchase. Interest on the bonds will be paid every April 1 and October 1 until maturity. Assuming the premium or discount is amortized every interest payment date using straight- line amortization, how much cash will Everjoy receive and how much total interest revenue will Everjoy Company report relative to the October 1 interest payment?

On April 1, Everjoy Company Purchased $30,000 of Miller Corporation's