John Smith Inc. issued $800,000 of 10 percent, 10-year bonds payable at a price of 113.59 on May 31, 2020. The market interest rate at the date of issuance was 8 percent, and the John Smith Inc. bonds pay interest semi-annually. The effective-interest amortization table for the bond premium is presented here for the first two interest periods. (Click the icon to view the effective-interest amortization table.) How much cash did John Smith Inc. receive upon issuance of the bonds payable? Continue the effective-interest amortization table for the bond premium for the next two interest payments. Record issuance of the bonds on May 31, 2020, and payment of the third semi-annual interest amount and amortization of the bond premium on November 30, 2021. a. How much cash did John Smith Inc. receive upon issuance of the bonds payable? (Round your answer to the nearest whole dollar.) John Smith received cash of $ upon issuance of the bonds payable. b. Continue the effective-interest amortization table for the bond premium for the next two interest payments. (Round your answers to the nearest whole dollar.) A D E B Interest Expense Unamortized End of Semi-annual Interest Period May 31, 2020 Interest Payment (5% of (4% of Preceding Bond Carrying Maturity Value) Amount) Premium Amortization (A-B) Premium Account Bond Balance (Previous D Carrying Amount - Current C) ($800,000+ D) S 108.720 $ 908,720 Nov. 30, 2020 $ 40,000 $ 36,349 $ 40.000 36.203 3,651 3,797 105,069 905,069 101.272 901,272 May 31, 2021 Nov. 30, 2021 May 31, 2022 c. Record issuance of the bonds on May 31, 2020, and payment of the third semi-annual interest amount and amortization of the bond premium on November 30, 2021. Let's begin by recording the issuance of bonds on May 31, 2020. (Record debits first, then credits. Exclude explanations from journal entries. Round amounts to the nearest dollar.) May Date 2020 31 Journal Entry Accounts Debit Credit Record the payment of the third semi-annual interest amount and amortization of the bond discount on November 30, 2021. Date Nov. 2021 30 Journal Entry Accounts Debit Credit O Amortization table C End of Semi-annual Interest Period Interest Payment (5% of Maturity Value) Interest Expense (4% of Preceding Bond Carrying Amount) Unamortized Premium Amortization (A-B) Premium Account Balance (Previous D Bond Carrying Amount May 31, 2020 Nov. 30, 2020 $ $ May 31, 2021 40,000 $ 40,000 36,349 $ 36,203 3,651 3,797 - Current C) 108,720 $ 105,069 ($800,000 + D) 908,720 905,069 101,272 901,272 Print Done Time Rema