Moe Jones Inc. issued $400,000 of 8 percent, 10-year bonds payable at a price of 114.88 on May 31, 2017. The market interest rate at the date of issuance was 6 percent, and the Moe Jones Inc. bonds pay interest semi-annually.
The effective-interest amortization table for the bond premium is presented here for the first two interest periods:

1. How much cash did Moe Jones Inc. receive upon issuance of the bonds payable?
2. Continue the effective-interest amortization table for the bond premium for the next two interest payments. Round amounts to the nearest dollar.
3. Record issuance of the bonds on May 31, 2017, and payment of the third semi-annual interest amount and amortization of the bond premium on November 30, 2018. Explanations are not required.

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Amortization Table Unamortized Premium Account Balance (Previous D Current C) $59,520 57,306 55,025 Interest Expense (396 of Preceding Bond Carrying Amoun End of Semi-annual Interest Period May 31, 2017 Nov. 30, 2017 May 31, 2018 Interest Payment (4% of Maturity Value) Premiumm Amortization A - B) Bond Carrying Amount ($400,000- D) $459,520 457,306 455,025 $16,000 16,000 $13,786 13,719 $2,214 2,281