2. At a Discount: Garcia Company issues 10%, 15-year bonds with a par value of $240,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 14%, which implies a selling price of 75 14. The effective interest method is used to allocate interest expense. A. What are the issuer's cash proceeds from issuance of these bonds? B. Prepare the journal entry to record the issuance of the bond. C. Use the table below to help you prepare the journal entry to record the first semi-annual interest payment/ expense. 2. At a Discount: Garcia Company issues 10%, 15-year bonds with a par value of $240,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 14%, which implies a selling price of 75 1. The effective interest method is used to allocate interest expense. A What are the issuer's cash proceeds from issuance of these bonds? B. Prepare the journal entry to record the issuance of the bond. c. Use the table below to help you prepare the journal entry to record the first semi-annual interest payment/ expense. D. Complete the Effective Interest Amortization Schedule for the 1" year. (A) (B) (C) (D) (E) Cash Interest Paid Bond Interest Expense Carrying Value Period Ending Date Notes Premium or Discount Amortization Interest expense- interest paid Unamortized Premium or Discount Par +/- Carrying Value Stated Rate/2 x Par Market Rate/2 * Carrying Value Initial Date 1" semi- annual date 2semi- annual date At a Premium: Garcia Company issues 10%, 15-year bonds with a par value of $240,000 and semiannual interest line rice of 117 chichimli