Gracie Corporation issued $300,000 5-year, 8% bonds for $325,591 on January 1, 2019 when the market rate is 6%. Interest is paid semiannually every June 30 and December 31. Always assume companies use the effective-interest method.

What is the par value of the bonds, also known as the principal or face value?

What is the amount of cash Gracie Corporation receives when it issues the bonds? This is also known as the selling price or issue price of the bonds.

What is the stated rate on the bonds?

Were these bonds sold at a premium or discount? What is the amount of the premium or discount on the issue date?

Calculate the interest expense that will be recognized on June 30, 2019.

Calculate the amount of cash that will be paid on June 30, 2019.

Calculate the amortization of the discount or premium on June 30, 2019.

Calculate the ending balance in the discount or premium account on June 30, 2019.

Calculate the carrying value of the bonds on June 30, 2019.