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Required information The following information applies to the questions displayed below! Jessie Co. Issued $6 million face amount of 12.5%, 10-year bonds on April 1,

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Required information The following information applies to the questions displayed below! Jessie Co. Issued $6 million face amount of 12.5%, 10-year bonds on April 1, 2019. The bonds pay interest on an annual basis on March 31 each year. Required: a. Assume that market interest rates were slightly lower than 12.5% 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 sell for more than their face amount. The bonds will sell for less than their face amount The bonds will sell for equal to their face amount D Required information The following information applies to the questions displayed below) Jessie Co. issued $6 million face amount of 12.5%, 10 year bonds on April 1, 2019. The bonds pay interest on an annual basis on March 31 each year. b-1. Independent of your answer to part a, assume that the proceeds were $6.083.000. Use the horizontal model to show the effect of Issuing the bonds. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Balance Sheet Liabilities Assets Stockholders' Equity Net Income Income Statement Revenues 4 Required information [The following information applies to the questions displayed below.) Jessie Co. issued $6 million face amount of 12.5%, 10-year bonds on April 1, 2019. The bonds pay interest on an annual basis on March 31 each year. b-2. Independent of your answer to part a, assume that the proceeds were $6,083,000. 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 1 Record the issuance of bond. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal Required information (The following information applies to the questions displayed below.) Jessie Co. issued $6 million face amount of 12.5%, 10-year bonds on April 1, 2019. The bonds pay interest on an annual basis on March 31 each year. c. Calculate the interest expense that Jessie Co. will show with respect to these bonds in its income statement for the fiscal year ended September 30, 2019, assuming that the premium of $83,000 is amortized on a straight-line basis. Accrued interest payable Premium amortization Interest expense for 6 months

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