Question

required information the following information applies to the questions displayed below. hillside issues $3,000,000 of 6%, 15 - year bonds dated january 1, 2027, that pay interest semiannually on june 30 and december 31. the bonds are issued at a price of $2,592,334. complete this question by entering your answers in the tabs below. req 1 req 2a to 2c req 3 req 4 req 5 prepare the first two years of a straight - line amortization table. note: round your intermediate and final answers to the nearest whole dollar semiannual period - end unamortized discount carrying value 01/01/2027 06/30/2027 12/31/2027 06/30/2028 12/31/2028

Explanation:

Step1: Calculate total bond discount

$\$3,000,000 - \$2,592,334 = \$407,666$

Step2: Calculate semiannual discount amortization

Total semiannual periods = $15 \times 2 = 30$
$\frac{\$407,666}{30} \approx \$13,589$

Step3: Compute values for 01/01/2027

Unamortized Discount = $\$407,666$
Carrying Value = $\$2,592,334$

Step4: Compute values for 06/30/2027

Unamortized Discount: $\$407,666 - \$13,589 = \$394,077$
Carrying Value: $\$2,592,334 + \$13,589 = \$2,605,923$

Step5: Compute values for 12/31/2027

Unamortized Discount: $\$394,077 - \$13,589 = \$380,488$
Carrying Value: $\$2,605,923 + \$13,589 = \$2,619,512$

Step6: Compute values for 06/30/2028

Unamortized Discount: $\$380,488 - \$13,589 = \$366,899$
Carrying Value: $\$2,619,512 + \$13,589 = \$2,633,101$

Step7: Compute values for 12/31/2028

Unamortized Discount: $\$366,899 - \$13,589 = \$353,310$
Carrying Value: $\$2,633,101 + \$13,589 = \$2,646,690$

Answer:

Semiannual Period-End	Unamortized Discount	Carrying Value
06/30/2027	$\$394,077$	$\$2,605,923$
12/31/2027	$\$380,488$	$\$2,619,512$
06/30/2028	$\$366,899$	$\$2,633,101$
12/31/2028	$\$353,310$	$\$2,646,690$