On January 1 of this year, Barnett Corporation sold bonds with a face value of $507,500 and a coupon rate of 7 percent. The bonds mature in 20 years and pay interest annually on December 31. Barnett...

Extracted text: On January 1 of this year, Barnett Corporation sold bonds with a face value of $507,500 and a coupon rate of 7 percent. The bonds mature in 20 years and pay interest annually on December 31. Barnett uses the effective-interest amortization method. Ignore any tax effects. Each case is independent of the other cases. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answers to nearest whole dollar amount.) Required: 1. Complete the following table. The interest rates provided are the annual market rate of interest on the date the bonds were issued. Case A (7%) Case B (8%) Case C (6%) a. Cash received at issuance $ 507,500 b. Interest expense recorded in Year 1 $ 35,525 c. Cash paid for interest in Year 1 $ 35,525 d. Cash paid at maturity for bond principal $ 507,500