10-4A (Algo) Straight-Line: Amortization of bond discount LO P2 [The following information applies to the questions displayed below.] Legacy issues $580,000 of 8.0%, four-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $507,959 when the market rate is 12%. Problem 10-4A (Algo) Part 2 2. Determine the total bond interest expense to be recognized over the bonds' life. Answer is complete but not entirely correct. Total bond interest expense over life of bonds: Amount repaid: 8 payments of $ 22,100 $ 176,800 Par value at maturity 580,000 Total repaid Less amount borrowed Total bond interest expense 756,800 507,959 $ 248,841 Required information Problem 10-4A (Algo) Straight-Line: Amortization of bond discount LO P2 [The following information applies to the questions displayed below.] Legacy issues $580,000 of 8.0%, four-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $507,959 when the market rate is 12%. Problem 10-4A (Algo) Part 3 3. Prepare a straight-line amortization table for the bonds' first two years. (Round your intermediate and final answers to the nearest whole dollar.) Semiannual Period-End 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 Unamortized Carrying Value Discount $ 507,959 Problem 10-4A (Algo) Straight-Line: Amortization of bond discount LO P2 [The following information applies to the questions displayed below.] Legacy issues $580,000 of 8.0%, four-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $507,959 when the market rate is 12%. Problem 10-4A (Algo) Part 4 4. Prepare the journal entries to record the first two interest payments. View transaction list View journal entry worksheet No Date 1 June 30 Bond interest expense General Journal Debit Credit Discount on bonds payable Cash 2 December 31 Bond interest expense Discount on bonds payable Cash ........ (