AP10-10A (Amount of bond issuance and journal entries at various yields) Amos Satellites Inc., a satellite communication provider, wants to develop the Internet of Things (IoT) by launching a constellation of next-generation satellites in a low Earth orbit (LEO). Amos issues bonds to finance the development, construction, and launch of the LEO satellites. Amos issued 5% 15-year bonds with a face value of $250 million. The bonds will pay interest quarterly.

Required

Calculate the amount of cash Amos will receive if the bonds are sold at a yield rate of:

1. 5% (issued at par)
2. 4.5% (issued at 105.43)
3. 5.5% (issued at 94.915)

Prepare the journal entry Amos would record at the time of the issuance of the bonds under each of the alternative yields. Also prepare the journal entries to record the interest expense for the first two periods under each alternative. Ignore year-end accruals of interest.