Required:

Compute the cash proceeds from bond issues under the following terms. For each case, indicate whether the bonds sold at a premium or discount.

a. Pear, Incorporated issued $193,000 of 10-year, 8 percent bonds at 101.

b. Apple, Incorporated issued $97,000 of five-year, 12 percent bonds at 99.

c. Cherry Company issued $172,000 of five-year, 6 percent bonds at 103 1/4.

d. Grape, Incorporated issued $72,000 of four-year, 8 percent bonds at 99.$