Bond Discount, Entries for Bonds Payable Transactions, Interest Method of Amortizing Bond Discount On July 1, Year 1, Danzer Industries Inc. issued $50,000,000 of 20-year, 11% bonds at a market (effective) interest rate of 14%, recelving cash of $40,003,000. 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. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds Year 1 July 1 Cash 01 Discount on Bonds Payable al Bonds Payable 2. Journalize the entries to record the following: a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the interest method. (Round to the nearest dollar) Year 1 Dec. 31 Interest Expense Discount on Bonds Payable Cash . The interest payment on June 30, Year 2, and the amortization of the bond discount, using the interest method. (Round to the nearest dollar) Year 2 June 30 Interest Expense minuto de a. The first semiannual Interest payment on December 31, Year 1, and the amortization of the bond discount, using the interest method. (Round to the nearest dollar) Year 1 Dec. 31 Interest Expense Discount on Bonds Payable Cash b. The interest payment on June 30, Year 2, and the amortization of the bond discount, using the interest method. (Round to the nearest dollar) Year 2 June 30 Interest Expense Discount on Bonds Payable Cash Feedback 3. Determine the total interest expense for Year 1. Feedback Check My Wor 3. Year 1 Interest expense is the amount debited in 2(a). Foto