The notes to Baker Magnetic's financial statements recently reported the following data on September 30, Year 1 (the end of the fiscal year):

Baker amortizes discount by the effective-interest method.
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1. Answer the following questions about Baker's long-term liabilities:

a. What is the maturity value of the \(6.00 \%\) debenture bonds?

b. What are Baker's annual cash interest payments on the \(6.00 \%\) debenture bonds?

c. What is the carrying amount of the \(6.00 \%\) debenture bonds at September 30, Year 1?

2. Prepare an amortization table through September 30 , Year 4 , for the \(6.00 \%\) debenture bonds. Round all amounts to the nearest thousand dollars, and assume that Baker pays interest annually on September 30 .
3. Record the September 30, Year 3 and Year 4, interest payments on the \(6.00 \%\) debenture bonds.
4. There is no premium or discount on the other indebtedness. Assuming that annual interest is paid on September 30 each year, record Baker's September 30, Year 2, interest payment on the other indebtedness. Round interest to the nearest thousand dollars. 5. Show how Baker would report the debenture bonds payable and other indebtedness of Sep-
tember 30, Year 4 .

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NOTE 4. INDEBTEDNESS Long-Term debt at September 30, Year 1, included the following: 6.00% debentures due Year 20 with an effective-interest rate of 9.66%, net of unamortized discount of $58,695,000........... Other indebtedness with an interest rate of 8.30%, due $12,108,000 in Year 5 and $19,257,000 in Year 6.. $166,305,000 31,365,000