Number of bonds 3,000 Effective interest rate 6% Par value of each bond $ 2,800 Interest Paid Per Year 2 Stated interest rate 4% Payment dates January 1st Issue date 1/1/20X2 July 1st Due date 12/31/20X6 Years to maturity 5 Call % 101% Called on 1/1/X6

Additional Facts: Bonds called on 1/1/20X6 After this payment is made Called at 101% Years after issue 4 Unamortized Discount $ 160,729

1)The value (not par value) of the bond at issue date is what? 2.) At each interest payment date cash is increased or decreased: 3.) Interest expense at the SECOND interest payment date is:

4.) Amortization of the discount/premium at the THIRD interest payment date is: 5.) At the date of call the reacquisition price of the bond is what? 6.) 7.) At the date of call the carrying value of the bond is what amount? At the date of call the journal entry required to extinguish the debt early has what impact on net income? DO NOT CONSIDER THE NORMAL JOURNAL ENTRY TO BOOK THE INTEREST AND AMORTIZATION OF THE DISCOUNT/PREMIUM. ONLY CONSIDER THE GAIN OR LOSS ENTRY.