Accounting for Bonds Bell Company sold $200,000 of 10-year bonds on January 1, 2017, to Brown Corporation. The bond indenture included the following information: Face value Date of bonds Maturity date $200,000 January 1, 2017 January 1, 2027 Stated rate of interest 12 Effective (market) rate of interest *Compounded semiannually Required: 1. Prepare the journal entry to record the issuance of the bonds. 2. What is the interest expense on the Bell Company books for the years ending December 31, 2017, and December 31, 2018, using straight-line amortization? 3. Show how the bonds would be presented on Bell's balance sheet at December 31, 2018