> On January 1, 20X1, John Hospital issued $500 of 8 percent, five year serial bonds at 94 percent. The bonds mature at a

On January 1, 20X1, John Hospital issued $500 of 8 percent, five year serial bonds at 94 percent. The bonds mature at a

On January 1, 20X1, John Hospital issued $500 of 8 percent, five year serial bonds at 94 percent. The bonds mature at a

Posted at： 2014-12-05　
beginning January 1, 20X2. Interest is payable annually on January 1. Required: What is the amount of 20X2 bond interest expense?

Please explain

01/01/2001 - Dr Cash 470 DR Bond Discount 30 CR Bonds Payable 500

12/31/2001 - DR Int Ex 46 CR Bond Discount 6 CR Cash 40

01/01/2002 - DR Bonds Payable 100 CR Cash 100

01/01/2002 - DR Int Ex 4.8 CR Bond Discount 4.8

12/31/2002 - DR Int Ex 36.8 CR Bond Disc 4.8 CR Cash 32

Total Int Ex in 2002 - 41.6

beginning January 1, 20X2. Interest is payable annually on January 1. Required: What is the amount of 20X2 bond interest expense?

Please explain
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