Accounting for Bonds Payable On January 1, 2015, Crabb & Co. issued 10-year bonds with a total face value of $500,000. The bond requires annual interest payments on December 31 at a stated rate of 6%. Bonds with similar features are discounted in the market at 8%. Were the bonds issued at a discount or a premium? ___________ How much cash will Crabb & Co. receive from issuing the bond? __________ How does this transaction affect Crabb & Co.'s balance sheet on the date of the issuance? What is the amount of cash interest paid by Crabb & Co. in 2015? __________ What is the amount of interest expense on the income statement in 2015? __________ What is the carrying value of the bond on December 31, 2015? __________ Prepare the entry at 12/31/15 to record interest expense, cash paid, and discount amortization