Austin Inc. issues bonds dated January 1, 2022, that pay interest semiannually on June 30 and December 31. The bonds have a $40,000 par value and an annual contract rate of 10%, and they mature in 10 years. The market rate at the date of issuance is 10%.

A.) How much cash proceeds will Austin Inc. receive when they issue bonds?

B.) Assuming the facts above, prepare the journal entry for the issuance of the bonds.

C.) Assuming the facts above, prepare the journal entry for the 1st interest payment on the bonds.

D.) Assuming the facts above, prepare the journal entry for the 2nd interest payment on the bonds. E.) How many times will the above journal entry for the interest payment be made over the life of the bond?

F.) Prepare the journal entry at the end of the bond's life (to extinguish the bond).

G.) How much interest expense will be recognized over the life of the bond?