Bonds issued at a Premium (Alternate is 9-57.) On January 1, 2004, New South Wales Travel issued $4 million of 5-year, 10% debentures. The market interest rate at issuance was 8%. 1. Compute the proceeds from issuing the debentures. 2. By using the balance sheet equation format, prepare an analysis of this bond transaction. Show entries for the issuer concerning

(a) issuance,

(b) first semiannual interest payment, and

(c) payment of maturity value. Round to the nearest thousand. 3. Show the corresponding journal entries for (a), (b), and

(e) in requirement 2. 4. Show how the bond-related accounts would appear on the balance sheets as of January 1, 2004 and July 1, 2004. Assume the semiannual interest payments and amortization due on the balance sheet date have been recorded.