Expert Q&A Done Problem 10-30A Straight-line amortization of a bond discount During 2013 and 2014, Cook Co. completed the following transactions relating to its bond isue CHECIK The company's fiscal year ends on December 31 2013 Mar. 1 Issoed $200,000of eight-year, 6 percent bonds for $194,000 The semiannual cash pay Sept. 1 Recognized interest expense inclhuding the amortization of the discount and made the Dec. 31 Recognized accrued interest expense including the amortization of the discount. Dec. 31 Closed the interest expense account. 2014 Mar. 1 Recognized interest expense including the amortization of the discount and made the Sept. 1 Recognized interest expense including the amortization of the discount and made the Dec. 31 Recognized accrued interest expense including the amortization of the discount d 2013 In 2013 I ment for interest is due on March I and September I, beginning Sepsember 2013 semiannual l cash payment for interest semiannual cash payment for interest semiannual cash payment for interest Closed the interest expense account Dec. 31 Required a. When the bonds were issued, was the market rate of interest more or less than the stated rate of interest? If the bonds had sold at face value, what amount of cash would Cook Co. have received? b. Prepare the general journal entries for these transactions Prepare the liabilities section of the balance sheet at December 31, 2013 and 2014 d. Determine the amount of interest expense Cook would report on the income statements for 2013 and 2014 the amount of interest Cook would pay to the bondholders in 2013 and 2014