Heathrow issues $2,400,000 of 9% 15-year bonds dated January 1, 2011, which pay interest semi-annually on June 30 and December 31. The bonds are issued at a price of $2,073,868
2,400,000 – 2,073,868 = 326,132 bond discount payable
326 132 / 30 = $10,871 semi-annual amortization of the rebate
2,400,000 x 4.5% = $108,000 semi-annual cash interest payment
10,871 + 108,000 = $118,871 semi-annual interest expense
Nominal value of the security – Unamortized discount = Book value
🇧🇷 Date . 🇧🇷 🇧🇷 🇧🇷 Discount on expenses. Silver . 🇧🇷 🇧🇷 .Titles . 🇧🇷 .Discount . Loading
🇧🇷 🇧🇷 🇧🇷 🇧🇷 🇧🇷 🇧🇷 🇧🇷 🇧🇷 🇧🇷 🇧🇷 🇧🇷 🇧🇷 🇧🇷 🇧🇷 🇧🇷 🇧🇷 Love. .Payment. .Payable . 🇧🇷 .Balance. 🇧🇷 .Rate
01/01/2011 . 🇧🇷 🇧🇷 🇧🇷 🇧🇷 🇧🇷 🇧🇷 🇧🇷 🇧🇷 🇧🇷 🇧🇷 🇧🇷 🇧🇷 🇧🇷 🇧🇷 🇧🇷 🇧🇷 🇧🇷 🇧🇷 🇧🇷 🇧🇷 🇧🇷 .2,400,000. 326,132. 2,073,868
06/30/2011 . .118,871. 10,871. 108,000. 2,400,000. 315,261. 2,084,739
31/12/2011 118,871 . 10,871. 108,000. 2,400,000. 304,390. 2,095,610
06/30/2012. .118,871. 10,871. 108,000. 2,400,000. 293,519. 2,106,481
31/12/2012 118,871 . 10,871. 108,000. 2,400,000. 282,648. 2,117,352
Source(s): Fan Accounting