Chapter 12 Problem Set A Problem 12-1 Southwest Gas and Oil Corporation recently issued 7,500 bonds with a $1,000 face value, 5-year bonds, with a stated rate of 5%. Interest is paid annually. Part A Calculate the amount of the premium or discount and the amount of cash received in each of the following situations: Issued at par value Issued at 102 Issued at 97 Part B Prepare the journal entry for issuance in each of the following situations: Issued at par value Issued at 102 Issued at 97 Part C Calculate the amount of a single interest payment. Calculate the total amount of interest paid over the life of the bond Calculate the total amount paid out over the life of the bond Calculate the cost of borrowing in each situation. Issued at par value Issued at 102 Issued at 97