Jan-31 cash $ 16,169,187.

17
Bond payable $ 15,000,000.00
premium on bond payable $1,169,187.17

Jul-31 interest expesnse $ 404,229.68

Premium amortization $ 45,770.32
cash $ 450,000.00

Dec-31 interest expense $ 335,904.52

premium amortization $ 39,095.48
interest payable $ 375,000.00
 A B C D
interest expense Interest Premium Premium on bond
(carrying amount payament(face amortization(B- payable( balance )
X market rate) value X stated rate) A)

Jan-31 $1,169,187.17
Jul-31 $404,229.68 $ 450,000.00 $ 45,770.32 $1,123,416.85
Dec-31 $ 335,904.52 $ 375,000.00 $ 39,095.48 $1,084,321.37
 E
Carrying amount of
bond ( face value
+D)

$16,169,187.17
$16,123,416.85
$16,084,321.37
Dec-31 cash $2,213,251.97
Discount on bond payable $ 286,748.03
Bond payable $ 2,500,000.00

Jun-30 interest expense $132,795.12

cash $ 125,000.00
Discount amortization $7,795.12

Dec-31 interest expense $133,262.83

cash $ 125,000.00
Discount amortization $8,262.83
 A B C D
interest Interest Discount discount on
expense payament(face amortization(A- bond
(carrying value X stated B) payable( balan
amount X rate) ce )
market rate)

Dec-31 $286,748.03
Jun-30 $132,795.12 $ 125,000.00 $7,795.12 $278,952.91
Dec-31 $133,262.83 $ 125,000.00 $8,262.83 $270,690.09
Jun-30 $133,758.59 $ 125,000.00 $8,758.59 $261,931.49
Dec-31 $134,284.11 $ 125,000.00 $9,284.11 $252,647.38
 E
Carrying amount
of bond ( face
value -D)

$2,213,251.97
$2,221,047.09
$2,229,309.91
$2,238,068.51
$2,247,352.62
lease asset $79,246.64
lease liabilities $79,246.64

lease liabilities $ 17,075.34

interest expense $7,924.66
cash $ 25,000.00

$79,246.64
1
2
3
4
Beginning liability Payment interest principal ending liabilities
$79,246.64 $ 25,000.00 $7,924.66 $ 17,075.34 $62,171.30
$62,171.30 $ 25,000.00 $6,217.13 $ 18,782.87 $43,388.43
$43,388.43 $ 25,000.00 $4,338.84 $ 20,661.16 $22,727.27
$22,727.27 $ 25,000.00 $2,272.73 $ 22,727.27 $0.00