$9$

Required Information

Use the following information for the Problems below. $($Algo$)$

$[$The following information applies to the questions displayed below.$]$

Hillside issues $$2,900,000$ of $9\%,15-$year bonds dated January $1,2021,$ that pay interest semiannually on June $30$ and December $31.$

Problem $10-1$A $($Algo$)$ Straight$-$Line: Amortization of bond discount LO P$2$

The bonds are issued at a price of $$2,505,923.$

Required:

Prepare the January $1$ journal entry to record the bonds' issuance.

$2($a$)$ For each semiannual period, complete the table below to calculate the cash payment.

$2($b$)$ For each semiannual period, complete the table below to calculate the straight$-$line discount amortization.

$2($c$)$ For each semiannual period, complete the table below to calculate the bond interest expense.

Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life.

Prepare the first two years of a straight$-$line amortization table.