ccounting for Notes Issues at a Premium The Longo Corporation issued $2 million maturity value of 8 percent coupon rate notes, with interest paid semiannually.

At the time of the note issuance, equivalent risk-rated debt instruments carried a yield rate of 6 percent. The notes matured in 5 years.

Calculate the proceeds that the Longo Corporation would receive from the sale of the notes. Round your answer to the nearest dollar.

$Answer

How will the notes be reported on Longo's balance sheet immediately following the sale? Round your answers to the nearest dollar.

Bonds payable	$Answer
Plus: Bond Premium	$Answer
Book Value	$Answer

Calculate the interest expense on the notes for the first year. Round answers to the nearest dollar.

First six months	$Answer
Second six months	$Answer

Calculate the book value of the notes at the end of the first year. Round answer to the nearest dollar.

$Answer