5.

Hillside issues $1,200,000 of 8%, 15-year bonds dated January 1, 2015, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,036,935. Required: 1. Prepare the January 1, 2015, journal entry to record the bonds' issuance. View transaction list Journal entry worksheet Record the issue of bonds with a par value of $1,200,000 cash on January 1, 2015 at an issue price of $1,036,935. Note: Enter debits before credits. General Journal Debit Credit Date Jan 01, 2015 Record entry View general journal Clear entry 2(a)For each semiannual period, complete the table below to calculate the cash payment. Par (maturity) value Annual Rate Year Semiannual cash interest payment 2(b)For each semiannual period, complete the table below to calculate the straight-line discount amortization. Par (maturity) Bonds price Discount on Bonds Payable Semiannual periods Straight-line discount amortization value = 2(c)For each semiannual period, complete the table below to calculate the bond interest expense. Semiannual cash payment Discount amortization Bond interest expense 3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. Total bond interest expense over life of bonds: Amount repaid: payments of Par value at maturity Total repaid 0 Less amount borrowed Total bond interest expense $ 0 4 Prepare the first two years of an amortization table using the straight-line method. Semiannual Unamortized Carrying Period-End Discount Value 01/01/2013 06/30/2013 12/31/2013 06/30/2014 12/31/2014 5 Prepare the journal entries to record the first two interest payments. View transaction list Journal entry worksheet Record the first interest payment on June 30, 2015. Note: Enter debits before credits. General Journal Debit Credit Date Jun 30, 2015 Record entry View general journal Clear entry