Brand Company issued $1,320,000 face value, eight-year, 11% bonds on April 1, 2014, when the market rate of interest was 11%. Interest payments are due every October 1 and April 1. Brand uses a calendar year-end.

1. Identify and analyze the effect of the issuance of the bonds on April 1, 2014.

Cash = ? Bonds Payable = ?

2. Identify and analyze the effect of the payment of interest on October 1, 2014.

Cash = ? Stockholders' Equity = ? Interest Expense = ? Net income = ?

3. Determine the total cash inflows and outflows that occurred on the bonds over the eight-year life.

Total cash inflows = ?

Total cash outflows = ?