Bonds Problem

Hartz Corporation had the following transactions relating to borrowings during 2020:

• Hartz issued $2,000,000 in ten-year 5% bonds when the price was 98 (Bond A). Interest is paid once a year.
• Hartz issued $2,000,000 in ten-year 5% bonds when the price was 102. (Bond B). Interest is paid once a year.
• Hartz issued $2,000,000 in ten -year 5% bonds that were issued at par (100) (Bond C). Interest is paid once a year

Required

• Calculate the amount of money received when the bonds were issued for each bond.
• Calculate the amount of cash paid on the interest date for each bond.
• Calculate the amount of interest expense for each bond.

	Bond A	Bond B	Bond C
Proceeds From Issuing Bond
Cash Paid on Interest Date
Interest Expense on Interest Date