Impact of a Discount Beral Corporation sold 20-year bands on January 1, 2017. The face value of the hands was $100,000, and they carry a 9% stated rate of interest, which is paid on December 31 of every year. Beral received 593,200 in return for the issuance of the bonds when the market rate was 10%. Any premium or discount is amortized using the effective interest method. Required: 1. Identify and analyze the effect of the sale of the bands on January 1, 2017. Activity Financing Accounts Cash Increase, Bonds Payable Increase, Discount on Bonds Payable Increase Statements) Balance Sheet only | Footback How does this entry affect the accounting equation? If a financial statement item is not affected, select 'No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, I.e, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. Balance Sheet Income Statement N Stockholders Equity Assets Liabilities Revenues Expenses Inc Cash 93,200 Bonds Payable 100,000 0 No Entry o No Entry o No Entry Discount on Bands Payable No Entry 0 No Entry Prepare a proper balance sheet presentation for January 1, 2017. Berol Corporation Balance Sheet (Partial) January 1, 2017 Liabilities Cash x $ 93,200 X Bonds payable x 100,000 X $ 193,200 X 2. Identify and analyze the effect of the payment of interest on December 31, 2017. Activity Financing X Accounts Cash Increase, Discount on Bonds Payable Decrease, Interest Expense Increase X Statement(s) Balance Sheet only X Foodba How does this entry affect the accounting equation? If a financial statement item is not affected, select 'No Entry and leave the amount box blank. If the effect on a financial statement item is negative, le, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. Round the amounts to the nearest whale dollar. Balance Sheet Income Statement Stockholders' Net Assets Liabilities Revenues Expenses Income Equity -9,000 x Cash 9,000 x No Entry X 0 x No Entry o Interest Expense 9,000 X -9,000 x F Prepare a proper balance sheet presentation for December 31, 2017. Berol Corporation Balance Sheet (Partial) December 31, 2017 Liabilities Cash x 14,200 X Bonds payable X 1,000 x $ 84,200