Band Discount, Entries for Bonds Payable Transactions On July 1, 201, Livingston Corporation, a wholesaler of manufacturing equipment, issued $46,000,000 of 20-year, 10% bonds at a market (effective) interest rate of 11%, receiving cash of $42,309,236. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: For all journal entries, If an amount box does not require an entry, leave it blank 1. Joumalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 2011 2011 July 1 2. Journalize the entries to record the following: a. The first semiannual interest payment on December 31, 2011, and the amortization of the bond discount, using the straight-line method. Round to the nearest dollar 20Y1 Dec. 31 b. The interest payment on June 30, 2012, and the amortization of the bond discount, using the straight-line method. Round to the nearest dollar, 2012 June 30 Dateemine the real interest Expense for TOY! 2. Journalize the entries to record the following: a. The first semiannual interest payment on December 31, 2041, and the amortization of the bond discount, using the straight line method. Round to the nearest dollar. 2011 Dec. 31 b. The interest payment on June 30, 20Y2, and the amortization of the bond discount, using the straight-line method. Round to the nearest dollar. 2012 June 30 3. Determine the total interest expense for 2011 4. Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest? 5. Compute the price of 542,309,236 received for the bonds by using the present value tables in Appendix A. Round your PV suestos decimal places and the final answers to the nearest dollar. Your total may vary slightly from the price given due to rounding differences Present volue of the face amount Present value of the semiannual interest payments Price received for the bonds