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Required information (The following information applies to the questions displayed below.) Alexi Co. issued $3.50 million face amount of 7%, 10-year bonds on June 1,

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Required information (The following information applies to the questions displayed below.) Alexi Co. issued $3.50 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 $3,144,000. 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.) Answer is complete but not entirely correct. Income Statement Revenues Assets Stockholders' Equity Net Income Expenses Balance Sheet Liabilities Bonds payable Discount on bonds payable Cash 3,144,000 = 3,500,000 356,000 X

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