Force Company issued $2,000,000 of 3 percent, 10-year bonds at 98 1/4. Interest is paid annually and the straight-line method is used for amortization.
a. Find what amount was received for the bonds?
b. Determine the amount of discount amortized each year?
c. Determine how much interest is expensed each year?
d. Determine how much interest is paid each year?
e. Find the carrying value of the bonds after the first interest payment?