LO 10-6 Lewis Company sold S500,000 of bonds at 97 on an interest payment date. Assuming the bonds BRIEF EXERCISE 10.5 will be retired in 10 years and interest is paid annually, calculate the amount of cash that will be Recording Bonds Issued at received and paid by Lewis in the first year, as well as the interest expense that will be recognized in that year. The bonds carry a stated interest rate of 5 percent. a Discount Purple & Orange, Inc., sold $800,000 of bonds on an interest payment date at 102. Assuming the LO10-6 BRIEF EXERCISE 10.6 bonds will be retired in 10 years and interest is paid annually, calculate the amount of cash that Recording Bonds Issued at will be received and paid by Purple & Orange in the first full year, as well as the amount of interest a Premium expense that will be recognized in that year. The bonds carry a stated interest rate 6.5 percent