Discount amortization

On January 1, 2014, Jack Company issues $4,512,000, 6%, 10-year bonds for cash of $3,898,819 when the market rate of interest is 8%. The bonds pay interest semi-annually on June 30 and December 31. Determine (1) the discount on bonds payable at the date of issuance, (2) the semi-annual cash interest payment, (3) the semi-annual discount amortization using the straight line method, and (4) the semi-annual interest expense. Round your answers to the nearest whole dollar amount.

Selling Price of Bonds: Face Value of Bonds: Discount on Bonds Payable: Cash interest payment : Discount amortization : Interest expense :

 

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