Moe Jones Inc. issued $400,000 of 8 percent, 10-year bonds payable at a price of 114.88 on May 31, 2020. The market interest rate at the date of issuance was 6 percent, and the Moe Jones Inc. bonds pay interest semi-annually.

The effective-interest amortization table for the bond premium is presented here for the first two interest periods:

a. How much cash did Moe Jones Inc. receive upon issuance of the bonds payable?

b. Continue the effective-interest amortization table for the bond premium for the next two interest payments. Round amounts to the nearest dollar.

c. Record issuance of the bonds on May 31, 2020, and payment of the third semiannual interest amount and amortization of the bond premium on November 30, 2021. Explanations are not required.

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Interest Expense (3% of Preceding Bond Carrying Amount (F)) Unamortized End of Bond Premium Amortization Balance (Previous Carrying Amount (В - с) Interest Premium Account Payment (4% of Interest Period Maturity Value) Semi-annual 1 E- Current D) ($400,000 + E) 2 May 31, 2020 $59,520 $459,520 Nov. 30, 2020 $16,000 $13,786 $2,214 57,306 457,306 4 May 31, 2021 16,000 13,719 2,281 55,025 455,025