Exercise A: On January 1, 2018 Lucas Inc issued 300 three-year bonds, each with a $1,000 face value. The have an annual stated rate of 5% and effective rate of 6%. The bonds pay interest annually. Calculate the face value of the bonds: Calculate the cash paid for interest each year: Calculate the net present value of the cash flows related to this bond as of 1/1/18: Calculate the initial balance in the Discount on Bonds Payable Account: Make the journal entry to record the issuance of the bond payable on 1/1/18: Cash Interest Interest Period Interest Expense Discount Amortization Unamortized Discount Bond Book Value 1/1/2018 12/31/2018 12/31/2019 12/31/2020