3 Hillier Electron Microscopes Inc. issued $85 million in eight-year bonds to finance the expansion of its electron micro-scope 4 manufacturing facility in Brantford, Ontario. The bonds pay 4% interest semi-annually and were issued at 87.439 to yield 6%. 5 6 7 Required 8 a) Complete the following table and prepare the related journal entries for the first two interest payments. 9 Amortization Date Interest Payment Interest Expense of Bond Balance of Bond Premium Carrying Value of Bonds Premium 10 11 Issuance 12 Payment 1 13 Payment 2 14 15 16 17 18 19 20 Date Account 21 Debit Credit 22 23 24 25 26 27 28 Payment 2 Date Account Debit Credit b) What is the carrying value of the bonds one year after issuance (that is, after the second semi-annual payment)? 8 19 30 31 32 33 34 35 36 37 38 39 40 41 42 3