Answer all in correspondence to the chart.

1. Is this bond sold at par, discount or premium?
2. When recording the bond sale, which accounts are credited(select all that apply): - Cash -Discount on Bond Payable -Premium on Bond Payable -Bond Payable -Interest Expense -Interest Payable
3. What is the amount of each interest payment? - $20,000 -$30,000 -$40,000 -$60,000
4. How much will the bond sell for?
5. How many interest payments will be made over this bond's life?
6. How much is Interest Expense on the FIRST payment?
7. How much is Interest Expense on the SECOND interest payment?
8. How much is the Amortization of the Premium on the SECOND interest payment?

Bond Valuation