Question: Most Solutions, Inc., issued 10% bonds, dated January 1, with a face amount of $640 million on January 1, 2018. The bonds mature in 2028

Most Solutions, Inc., issued 10% bonds, dated January 1, with a face amount of $640 million on January 1, 2018. The bonds mature in 2028 (10 years). For bonds of similar risk and the market yield is 12%. Interest expense is recorded at the effective interest rate. Interest is paid semiannually on June 30 and December 31. Most recorded the sale as follows:
January 1, 2018
Cash (price) ..................................................................566,589,440
Discount on bonds (difference) ........................................73,410,560
Bonds payable (face amount) ........................................................... 640,000,000
Required:
What would be the amount(s) related to the bonds that Most would report in its statement of cash flows for the year ended December 31, 2018?

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