Garcia Company issues 9.00%, 15-year bonds with a par value of $310,000 and semiannual interest payments on the issue date, the annual market rate for these bonds is 13.00%, which implies a selling price of 73 7/8. The effective interest method is used to allocate interest expense. Using the implied selling price of 73 7/8, what are the issuer’s cash proceeds from issuance of these bonds? Cash proceeds What total amount of bond interest expense will be recognized over the life of these bonds? What amount of bond interest expense is recorded on the first interest payment date? Bond interest expense
