158.Sandridge Company issued five-year 8% bonds with a face value of $50,000, for $53,512 on January 1, 2013 when the market (effective) rate of interest was 7%. The bonds pay annual interest each...

158.Sandridge Company issued five-year 8% bonds with a face value of $50,000, for $53,512 on January 1, 2013 when the market (effective) rate of interest was 7%. The bonds pay annual interest each December 31. Sandridge uses the effective interest method for amortization of premium or discount on bonds payable. (Round your answers to the nearest dollar.)


Required:


a) What is the annual amount of cash that Sandridge will pay out for interest?
b) What amount of interest expense and premium amortization should Sandridgerecognize for 2013? What is the carrying amount of the liability on December 31, 2013?
c) What amount of interest expense and premium amortization should Sandridge recognize for 2014? What is the carrying amount of the liability on December 31, 2014?
d) What is the total amount of interest that Sandridge will record in interest expense over the life of the bond?

159.Heather Corporation issued $300,000 in bonds payable on January 1, 2013 when the market interest rate at the time was 9%. Assume that the 10-year bonds were issued at 106.5, and the annual interest payment was $30,038. (Round your answers to the nearest dollar.)


a) What was the amount of premium on the bonds when they were issued?
b) Heather Corporation uses the effective interest method to amortize premium or discount on bonds payable. What was the amount of interest expense for 2013? What was the amount of premium amortization for 2013?
c) What was the carrying value of the bond liability on January 1, 2014? What was the amount of interest expense for 2014?