Bonds with a face value of $200,000 and a stated interest rate of 12% were issued on March 1, 2012. The bonds pay interest each February 28 and August 31 and mature on March 1, 2022. The issuing company uses the calendar year for financial reporting.

Required:

Using these data, complete the following tables for each of the conditions listed. (Show computations and assume straight-line amortization.)

1. The bonds sold at face value.

2. The bonds sold at 97.

3. The bonds sold at 103.

Case 1 Case 2 Case 3

Cash received at issuance date . . . . . . . . . . . . . . . . . . . . . . .

Total cash paid to bondholders through maturity . . . . . . . . .

Income statement for 2012:

Bond interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Balance sheet at December 31, 2012:

Long-term liabilities:

Bonds payable, 12% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Unamortized discount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Unamortized premium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Bond carrying value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Approximate effective interest rate* . . . . . . . . . . . . . . . . . . .

*Round to the nearest tenth of a percent.