! Required information [The following information applies to the questions displayed below.] Coley Co. issued $3.70 million face amount of 8%, 10-year bonds on June 1, 2013. The bonds pay interest on an annual basis on May 31 each year. b-1. Independent of your answer to part (a), assume that the proceeds were $3,338,000. Use the horizontal model to show the effect of issuing the bonds. (Enter decreases to account balances with a minus sign.) Assets Bonds payable -3700000 Bonds payable +3700000 Cash -3338000 Cash +3338000 Balance Sheet Liabilities + + Stockholders' Equity Net Income = = Income Statement Revenues I Expenses