Hanover Corporation issued $300,000 in bonds payable on January 1, Year 1 when the market rate of interest at the time was 7%. Assume that the 10-year bonds were issued at 103.5, and the annual interest payment was $22,495. (Round your answers to the nearest dollar.)
Required:What was the amount of premium on the bonds when they were issued?Hanover Corporation uses the effective interest method to amortize premium or discount on bonds payable. What was the amount of interest expense for Year 1? What was the amount of premium amortization for Year 1?What was the carrying value of the bond liability on January 1, Year 2? What was the amount of interest expense for Year 2?

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The Answer of Hanover Corporation issued $300,000 in bonds payable on January 1, Year 1 when the market rate of interest at the time was 7%. Assume that the 10-year bonds were issued at 103.5, and the annual interest payment was $22,495. (Round your answers to the nearest dollar.)
Required:What was the amount of premium on the bonds when they were issued?Hanover Corporation uses the effective interest method to amortize premium or discount on bonds payable. What was the amount of interest expense for Year 1? What was the amount of premium amortization for Year 1?What was the carrying value of the bond liability on January 1, Year 2? What was the amount of interest expense for Year 2?

Hanover Corporation Issued $300,000 in Bonds Payable on January 1