The notes to the Community Charities financial statements reported the following data on December 31, 2014 (end of the fiscal year):

Community Charities amortizes bonds by the effective-interest method and pays all interest amounts at December 31.
Requirements
1. Answer the following questions about Community Charities' long-term liabilities:
a. What is the maturity value of the 7% bonds?
b. What is Community Charities' annual cash interest payment on the 7% bonds?
c. What is the carrying amount of the 7% bonds at December 31, 2014?
2. Prepare an amortization table through December 31, 2017, for the 7% bonds. The market interest rate on the bonds was 8%. Round all amounts to the nearest dollar. How much is Community Charities' interest expense on the 7% bonds for the year ended December 31, 2017?
3. Show how Community Charities would report the 7% bonds payable and the 6½% notes payable at December 31, 2017.

Note D-Long-Term Debt $500,000 % notes payable, principal due in annual amounts of $50,000 in 2018 through 2023 6 300,000