Need minister to beside accounting?

A company issues $5,000,000, 7.8%, 20-year bonds to verbs 8% on January 1, 2007. Interest is compensated on June 30 and December 31. The proceeds from the bonds are $4,901,036. Using effective-interest amortization, what will the carrying helpfulness of the bonds be on the December 31, 2007 set off sheet?
$4,903,160
$5,000,000
$4,906,281
$4,902,077

how do you do this one?

Answers:
On June 30, 2007:

Interest expense = 4,901,036 x 8% x 6/12 = 196,041.44
Interest rewarded = 5,000,000 x 7.8% x6/12 = 195,000

The difference between interest expense and interest rewarded is the discount amortization (1,041.44) which is added to the proceeds to go and get the trial carrying good point (4,902,077.44).

On December 31, 2007:

Interest expense = 4,902,077.44 x 8% x 6/12 = 196083.10
Interest salaried = 5,000,000 x 7.8% x 6/12 = 195,000

Discount amortization = 1,083.10

New carrying plus = 1,083.10 + 4,902,077.44 = 4,903,160.54

The difference within answer would be due to rounding past its sell-by date.

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