Ferry Inc issued a $250,000 bond on March 1, 2020. The bond has a stated interest rate of 10%, matures on March 1, 2023 and pays interest on September 1 and March 1 of every year. The market interest rate was 12% when the bond was issued. Ferry Inc has a December 31 year end and uses the effective interest method to amortize bond discount or premium, and uses a discount or premium account. Present value factors for selected periods and interest rates are shown below. Present Value of Ordinary Annuity of $1 6% Present Value of $1 Periods 5% 6% 10% 12% 5% 10% 12% 3. 0.8638 0.8396 0.7513 0.7118 2.7232 2.6730 2.4869 2.4018 0.7462 0.7050 0.5645 0.5066 5.0757 4.9173 4.3553 4.1114 32 The amount of cash received for the bond issue on March 1, 2020 is equal to: Select one: a. $250,000 b. $237,716 O c. S61,466 O d. $262,686 Notes O Marks 32 The journal entry to record the issuance of bonds on March 1, 2020 should included a credit to: Select ane: O a. Discount on bonds payable for $12,284 O b. Bonds payable for $250,000 OC. Premium on bonds payable for $12,686 O d. Bonds payable for $262,284. Notes une Which of the following statements is TRUE? Select one: O a. Ferry Inc would record a discount on bonds payable at the issuance date O b. Ferry Inc would record interest expense at the issuance date. c. The stated rate, or the coupon rate, is used to calculate interest expense on a be O d. Ferry Inc would record a premium on bonds payable at the issuance date The interest expense that should be recorded on September 1, 2020 is Select one: O a. $12,500 b. $14.263 O C. $13,134 O d. $28,526 The interest expense Ferry Inc would record on December 31, 2020 is Select one: O a. $9,579 O b. $28,737 O c. S7,924 O d. $8,735 Total interest expense during the bond's life would equal: Select one: O a. $75,000 b. $87,284 c. S90,000 Od. $77,314