P10-3 (Algo) Comparing Bonds Issued at Par, at a Discount, and at a Premium LO10-2, 10-4, 10-5 On January 1 of this year, Barnett Corporation sold bonds with a face value of $504,500 and a coupon rate of 7 percent. The bonds mature in 8 years and pay interest annually on December 31. Barnett uses the effective-interest amortization method. Ignore any tax effects. Each case is independent of the other cases. (EV of $1, PV of $1. EVA of $1, and PVA of S1) (Use the appropriate factor(s) from the tables provided. Round your final answers to nearest whole dollar amount.) Required: 1. Complete the following table. The interest rates provided are the annual market rate of interest on the date the bonds were issued a Cash received at issuance b. Interest expense recorded in Year 1 Cash paid for interest in Year 1 Cash paid at maturity for bond principal Case A (7%) Case B (8%) Case (%) $ 504,500