10-2A Straight-Line: Amortization of bond discount LO P1, P2 Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $3,456,448. Required: 1. Prepare the January 1, 2017, journal entry to record the bonds' issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight-line discount amortization. 2(c) For each semiannual period, complete the table below to calculate the bond interest expense. 3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 4. Prepare the first two years of an amortization table using the straight-line method. 5. Prepare the journal entries to record the first two interest payments. Complete this question by entering your answers in the tabs below. Req 1 Req 2A to 2C Req 3 Req 4 Req 5 2 Prepare the January 1, 2017, journal entry to record the bonds' issuance. View transaction list Journal entry worksheet < 1 Book Print 0 erences Record the issue of bonds with a par value of $4,000,000 cash on January 1, 2017 at an issue price of $3,456,448. Note: Enter debits before credits. Date Jan 01, 2017 General Journal Debit Credit Record entry Clear entry View general journal Req 1 Req 2A to 2C Req 3 Req 4 Req 5 For each semiannual period, complete the table below to calculate the cash payment, straight-line discount amortization and be Par (maturity) value Annual Rate Par (maturity) value Bonds price = Semiannual cash payment Discount amortization Year Semiannual cash interest payment Discount on Bonds Payable Semiannual periods = Bond interest expense < Req 1 Req 3 > Straight-line discount amortization Total bond interest expense over life of bonds: Amount repaid: payments of Par value at maturity Total repaid Less amount borrowed Total bond interest expense Semiannual Period- Unamortized End 01/01/2017 Discount Carrying Value 06/30/2017 12/31/2017 06/30/2018 12/31/2018 Journal entry worksheet < 1 2 Record the first interest payment on June 30, 2017. Note: Enter debits before credits. Date Jun 30, 2017 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 1 2 Record the second interest payment on December 31, 2017. Note: Enter debits before credits. Date Dec 31, 2017 General Journal Debit Credit Record entry Clear entry View general journal >