530 Chapter 14 Long-Term Liabilities Refer to the bond details in Problem 14-4A Problem 14-8AB Effective Interest: Required Amortization of bond 1. Prepare the January 1 journal entry to record the bonds' issuance. 2. Determine the total bond interest expense to be recognized over the bonds' life discount P5 Check (2) $97,819 3. Prepare an effective interest amortization table like the one in Exhibit 14B.1 for the bonds' first two years. (3) 12/31/2020 carrying value, $307,308 4. Prepare the journal entries to record the first two interest payments. Legacy issues $325,000 of 5%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $292,181 when the market rate is 8% Problem 14-4A Straight-Line: Amortization of bond Required discount P2 1. Prepare the January 1 journal entry to record the bonds' issuance 2. Determine the total bond interest expense to be recognized over the bonds' life 3. Prepare a straight-line amortization table like the one in Exhibit 14.7 for the bonds' first two years 4. Prepare the journal entries to record the first two interest payments Check (2) $97,819 (3) 12/31/2020 carrying value, $308,589