A company issues 7%, 10-year bonds with a face amount of $90,000 on January 1, 2021. The market interest rate for bonds of similar risk and maturity is also 7%. Interest is paid semiannually on June 30 and December 31.

Required: 1. & 2. Record the bond issue and first interest payment on June 30, 2021

Sun City issues $47 million of bonds on January 1, 2021 that pay Interest semiannually on June 30 and December 31. A portion of the bond amortization schedule appears below: Cash Paid Interest Expense Decrease in Carrying Value Date 01/01/2021 06/30/2021 12/31/2021 Carrying Value $59,857,075 59,644,217 59,427, 101 $1,410,000 1,410,000 $1,197,142 1,192,884 $212,858 217,116 Required: 1. Were the bonds issued at face amount, a discount, or a premium? O Face amount O Discount O Premium 2. What is the original issue price of the bonds? Original price 3. What is the face amount of the bonds? Face amount 4. What is the stated annual Interest rate? (Hint: Be sure to provide the annual rate rather than the six-month rate.) Stated annual interest rate % 5. What is the market annual Interest rate? (Hint: Be sure to provide the annual rate rather than the six-month rate.) Market annual interest rate 96 6. What is the total cash paid for interest assuming the bonds mature in 20 years? Interest paid