Required
Compute the cash proceeds from bond issues under the following terms. For each case, indicate whether the bonds sold at a premium or discount:
a. Hett, Inc., issued $400,000 of 8-year, 8 percent bonds at 101.
b. Holt Co. issued $250,000 of 4-year, 6 percent bonds at 98.
c. Holmes Co. issued $300,000 of 10-year, 7 percent bonds at 102 ¼.
d. Hart, Inc., issued $200,000 of 5-year, 6 percent bonds at 97 ½.