A.
1.
Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.
Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations.
Discount on bonds payable: It occurs when the bonds are issued at a low price than the face value.
To prepare:
B.
The amount of bond interest expense for first year.
C.
To explain: The reason why the company was able to issue the bonds for $9,594,415 rather than $10,000,000.

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