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The company had the following transactions related to three bond issues: Issued $1,000,000 ten-year...

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Accounting

The company had the following transactions related to three bond issues:

  • Issued $1,000,000 ten-year bonds (Bond A) at face value. The interest rate on the bonds is 5%.
  • Issued $2,000,000 ten-year bonds (Bond B) when the price was 98. The interest rate on the bonds is 5%.
  • Issued $3,000,000 ten-year bonds (Bond C) when the price was 102.50. The interest rate on the bonds was 5%.

For each bond, calculate the following:

What were the proceeds when the bond was issued?

What is the amount of cash paid when the interest is paid?

What is the total interest expense when the interest is paid?

Bond A

Bond B

Bond C

Proceeds From Bond Issue

Cash Paid on Interest Date

Total Interest Expense on Interest Date

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