1. Sanchez Company has just completed a bond issue which resulted in $150,000 of 5 year, 8% bonds. Interest is paid annually. Prepare the journal entry to record the initial sale of the bonds.
2. Based on the information provided by Sanchez Company in #11, calculate the interest expense the company will recognize each year.
3. Assuming all interest payments have been made annually as required, what is Sanchez Co's total in it's Bond Payable account at the end of the 5th year? Assume all interest payments have been made except the final years interest.