In: Finance
Calculate interest expense for 2021 | ||||
Interest expense for June 2021 | $12,443 | 311076*(8%/2) | ||
Coupon amount for June 2021 | $9,000 | 300000*(6%/2) | ||
Premium amortized | $3,443 | 12443-9000 | ||
Bond payable balance, 30th June 2021 | $307,633 | 311076-3443 | ||
Interest expense for 4 months (July-Oct) | $8,204 | 307633*(8%)*(4/12) | ||
Amount of interest expense | $20,647 | (12443+8204) | ||
Thus, amount of interest expense reported in income statement is $20,647 | ||||