Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta

Exercise 90

Enviro Company issues 8%, 10-year bonds with a par value of $250,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 5%, which implies a selling price of
The straight-line method is used to allocate interest expense.
1. What are the issuer's cash proceeds from issuance of these bonds
2. What total amount of bond interest expense will be recognized over the life of these bonds
3. What is the amount of bond interest expense recorded on the first interest payment date