Required information Exercise 7-16 (Algo) Bonds payable-record issuance and discount amortization LO 7-8 [The following information applies to the questions displayed below.] Alexi Company issued $3.00 million face amount of 10%, 10-year bonds on June 1, 2022. The bonds pay interest on an annual basis on May 31 each year. Exercise 7-16 (Algo) Part b - Horizontal model b-1. Independent of your answer to part a, assume that the proceeds were $2,647,000. Use the horizontal model to show the effect of issuing the bonds. Indicate the financial statement effect. Note: Enter your answers in whole dollars, not in millions. Enter decreases with a minus sign to indicate a negative financial statement effect. Assets Balance Sheet Liabilities Stockholders' Equity Net Income Reve + = + = Exercise 7-16 (Algo) Part b - Journal entry b-2. Independent of your answer to part a, assume that the proceeds were $2,647,000. Record the journal entry to show the effect of issuing the bonds. Note: Enter your answer in whole dollar, not in millions. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet > 1 Record the issuance of bond. Note: Enter debits before credits. Event 1 General Journal Debit Credit > Required information Exercise 7-16 (Algo) Bonds payable-record issuance and discount amortization LO 7-8 [The following information applies to the questions displayed below.] Alexi Company issued $3.00 million face amount of 10%, 10-year bonds on June 1, 2022. The bonds pay interest on an annual basis on May 31 each year. Exercise 7-16(Algo) Part c c. Calculate the interest expense that Alexi Company will show with respect to these bonds in its income statement for the fiscal year ended September 30, 2022, assuming that the discount of $353,000 is amortized on a straight-line basis. Accrued interest payable Discount amortization Interest expense for 4 months Required information Exercise 7-16 (Algo) Bonds payable-record issuance and discount amortization LO 7-8 [The following information applies to the questions displayed below.] Alexi Company issued $3.00 million face amount of 10%, 10-year bonds on June 1, 2022. The bonds pay interest on an annual basis on May 31 each year. Exercise 7-16 (Algo) Part c c. Calculate the interest expense that Alexi Company will show with respect to these bonds in its income statement for the fiscal year ended September 30, 2022, assuming that the discount of $353,000 is amortized on a straight-line basis. Accrued interest payable Discount amortization Interest expense for 4 months