16 ! Part 2 of 4 1.53 points Required information Problem 7-31 (Algo) Bonds payable-calculate issue price and amortize discount LO 8 [The following information applies to the questions displayed below.] On January 1, 2019, Drennen Inc. issued $4.1 million face amount of 7-year, 14% stated rate bonds when market interest rates were 12%. The bonds pay semiannual interest each June 30 and December 31 and mature on December 31, 2025. Table 6-4, Table 6-5 (Use appropriate factor from the table provided.) eBook References Problem 7-31 (Algo) Part b - Horizontal model b-1. Assume instead that the proceeds were $4,036,000. Use the horizontal model to record the payment of semiannual interest and the related discount amortization on June 30, 2019, assuming that the discount of $64,000 is amortized on a straight-line basis. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Check m Balance Sheet Liabilities Stockholders' Equity Net Income Revenu 0+ = Cash Assets Cash 287,000 Interest expense