Drop down box options are bonds payable, cash, discounts on bonds payable.

Required information [The following information applies to the questions displayed below.) Alexi Co. issued $2.20 million face amount of 5%, 10-year bonds on June 1, 2019. The bonds pay interest on an annual basis on May 31 each year. b-1. Independent of your answer to part a, assume that the proceeds were $1,844,000. Use the horizontal model to show the effect of issuing the bonds. Indicate the financial statement effect. (Enter your answers in whole dollars, not in millions. Enter decreases with a minus sign to indicate a negative financial statement effect.) Income Statement Revenues Expenses Balance Sheet Assets Liabilities + Stockholders' Equity Net Income Reve + = + =