Brief Exercise 10.5 Recording Bonds Issued at a Discount (LO10-6) Lewis Company sold $500,000 of bonds at 97 on an interest payment date. Assume the bonds will be retired in 10 years and interest is paid annually. The bonds carry a stated interest rate of 5 percent. a. Calculate the amount of cash that will be received and paid by Lewis in the first year b. Calculate the interest expense that will be recognized in that year a. Cash received Cash paid b. Interest expense