A company is selling its $100,000 bonds. The bonds are 5 year bonds providing for the payment of the face amount at the end of the bond term and for the payment of interest annually. The contract rate provided in the bond is 5%. When the company sells its bonds the market rate of interest is 8%.

Calculate the current fair market value of the company's $100,000 bond.

When the bookkeeper prepares the JE reflecting the company's initial state of its $100,000 bond on Jan 1 of Year 1, they will:

Debit Bond payable, debit bond premium, credit cash or debit bond discount?

What is the net book value of the company's $100,000 bond after its sale on Jan 1 of year 1?

At the end of Yr 5, how much total cash will the company pay of its $100,00 bond on the retirement of that bond?