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On January 1, Year 1, the Diamond Association issued bonds with a face value of $300,000, a stated rate of interest of 6 percent, and a 10-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 7 percent at the time the bonds were issued. The bonds sold for $278,932. Diamond used the effective interest rate method to amortize the bond discount Required a. Determine the amount of the discount on the day of issue. b. Determine the amount of interest expense recognized on December 31, Year 1. (Round your answer to the nearest dollar amount.) c. Determine the carrying value of the bond liability on December 31, Year 1. (Round your answer to the nearest dollar amount.) a $ 21,068 b. Discount Interest expense Carrying value $ 19,525 $ 280,457 c. d. Provide the general journal entry necessary to record the December 31, Year 1, Interest expense. (if no entry is required for a Eransaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest dollar amount.) Date No Debit General Journal Credit Year 1 Interest expense Cash 19,525 1,525 & Red text indicates no response was expected in a cell or a formule-based calculation is incorrect no points deducted. Saved On January 1, Year 1. Price Co. issued $190,000 of five-year, 6 percent bonds at 96 %. Interest is payable annually on December 31 The discount is amortized using the straight-line method. Required Prepare the journal entries to record the bond transactions for Year 1 and Year 2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet Debit Credit No Date 1 Jan 01 General Journal Discount on bonds payable Bonds payable