Required information The following information applies to the questions displayed below! Alexi Co, issued $2.70 million face amount of 7%. 10-year bonds on June 1, 2019. The bonds pay interest on an annual basis on May 31 each year. Required: a. Assume that the market interest rates were slightly higher than 7% when the bonds were sold. Would the proceeds from the bond issue have been more than, less than or equal to the face amount? Multiple Choice The bonds will cell for less than their face amount. The bonds will sell for more than their face amount The bonds will sell for equal to the face amount Homework Saved Help Required information The following information applies to the questions displayed below.) Alexi Co. issued $2.70 million face amount of 7%, 10-year bonds on June 1, 2019. 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 $2,348,000. Use the horizontal model to show the effect of issuing the bonds. Indicate the financial statement effect. (Enter your answers in whole dollars, not in millions. Enter decreases with a minus sign to indicate a negative financial statement effect.) Balance Sheet Liabilities Assets Stockholders' Equity Net Income ++ ! Required information [The following information applies to the questions displayed below.) Alexi Co. issued $2.70 million face amount of 7%, 10-year bonds on June 1, 2019. The bonds pay interest on an annual basis on May 31 each year, b-2. Independent of your answer to part a, assume that the proceeds were $2,348,000. Record the journal entry to show the effect of Issuing the bonds. (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 Record the issuance of bond. Note: Enter debits before credits. Event General Journal Debit Credit 1 aded Homework Saved Help Required information [The following information applies to the questions displayed below.) Alexi Co. issued $2.70 million face amount of 7%. 10-year bonds on June 1, 2019. The bonds pay interest on an annual basis on May 31 each year. c. Calculate the interest expense that Alexi Co will show with respect to these bonds in its income statement for the fiscal year en September 30, 2019, assuming that the discount of $352,000 is amortized on a straight-line basis. Accrued interest payable Discount amortization Interest expense for 4 months $ 0
