Bond discount, entries for bonds payable transactions, interest method of amortizing bond discount

On July $1,20$Y$1,$ Livingston Equipment Co$.,$ a wholesaler of manufacturing equipment, issued $$35,000,000$ of $20-$year, $11\%$ bonds at a market $($effective$)$ interest rate of $14\%,$ receiving cash of $$28,002,100.$ 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.

Question Content Area

$1.$ Journalize the entry to record the amount of cash proceeds from the issuance of the bonds.

DateAccountDebitCredit

$20$Y$1$ July $1$

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$2.$ Journalize the entries to record the following:

a$.$ The first semiannual interest payment on December $31,20$Y$1,$ and the amortization of the bond discount, using the interest method. Round to the nearest dollar.

DateAccountDebitCredit

$20$Y$1$ Dec. $31$

Question Content Area

b$.$ The interest payment on June $30,20$Y$2,$ and the amortization of the bond discount, using the interest method. Round to the nearest dollar.

DateAccountDebitCredit

$20$Y$2$ June $30$

Question Content Area

$3.$ Determine the total interest expense for $20$Y$1.$ Round to the nearest dollar.

fill in the blank $1$ of $1$$