Bond Discount, Entries for Bonds Payable Transactions, Interest Method of Amortizing Bond Discount On July 1, Year 1, Danzer Industries Inc. issued $55,000,000 of 20-year, 11% bonds at a market (effective) interest rate of 14%, receiving cash of $44,003,300. 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 Discount on Bonds Payable Feedback Bonds Payable Check My Wirk 44.003,300 55.000.000 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 88: