Earl Lee Riser Alarm Co. issued $10,000 of bonds on January 1, 2018. The bonds pay interest semiannually. This is a partial bond amortization schedule for the bonds. What would be the total interest expense recognized for the bond issue over its full term?

Question

Earl Lee Riser Alarm Co. issued $10,000 of bonds on January 1, 2018. The bonds pay interest semiannually. This is a partial bond amortization schedule for the bonds.  What would be the total interest expense recognized for the bond issue over its full term?

Quizplus · Accepted Answer

($400 × 2 × 20) + ($10,000 - 9,080) = $16,920