A13-6 Interest Expense (LO 13-4) Mathieson Co. issues a $12,500,000, 70% bond on 1 October 20X4. At this time, market interest rates are in the range of 6%. The bond had a 10-year life from 1 October 20X4, and paid interest semi-annually on 31 March and 30 September. (PV of $1, PVA of $1, and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Calculate the proceeds that would be raised on bond issuance (Round time value factor to 5 decimal places. Do intermediate calculations. Round your final answer to the nearest whole dollar amount.) hot round Proceeds from bond issuance $ 13,420,893 2. Prepare an amortization table using the effective interest method of amortization Complete the first four payments only. (Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Period Cash Interest Interest Dorp Closing Net Bond Paid Expense Amortization Liab. Op balance 13,420,893 1 $ 437.500 $ 402,627 $ 13,386,020 2 $ 437 500 $ 401.581 15 13,350,101 3 $ 437500 $ 400,503 13.313,104 4 $ 437.500 s 399,393 $ 13.274,997 3. Prepare journal entries for 20X4 and 20X5, using the effective interest method. ABC has a 31 December fiscal year-end. (Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) View transaction list Journal entry worksheet Journal entry worksheet 1 2. 3 4 5 Record the accrual of interest expense. Note: Enter debits before credits. General Journal Debit Credit Date 31 December 20X4 201,313 Interest expense Premium on bonds payable Interest payable 218,750 Record entry Clear entry View general journal