Accounting question

[4dkids]

Hello all! Would any bright accountant major be willing to tell me how the red $1,762 amount below is achieved? BIG THANK YOU in advance.





3/1/07 Cash........................................................................... 236,045
Discount on Bonds Payable.............................. 13,955*
Bonds Payable ............................................ 250,000
*Maturity value of bonds payable $250,000
Present value of $250,000 due in 7 periods at 6%
($250,000 X .66506) $166,265
Present value of interest payable semiannually
($12,500 X 5.58238) 69,780
Proceeds from sale of bonds (236,045)
Discount on bonds payable $ 13,955
9/1/07 Interest Expense................................................ 14,163
Discount on Bonds Payable ............... 1,663
Cash............................................................ 12,500
12/31/07 Interest Expense................................................ 9,508
Discount on Bonds Payable ............... 1,175
($1,762 X 4/6)

Interest Payable ($12,500 X 4/6)......... 8,333