Bond Discount, Entries for Bonds Payable Transactions, Interest Method of Amortising Bond Discount On July 1, Year 1, Livingston Corporation, a wholesaler of manufacturing equipment, issued 562,000,000 of 20 year, 11% bonds at a market (effective) interest rate of 14%, receiving cash of $49,603,720. 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: For a compound transaction, if an amount box does not require an entry, leave blank. 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds. Year 1, July 1 49,603,720 Cash Discount on Bonds Payable Bonds Payable 12,396,280 62,000,000 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 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 3. Determine the total interest expense for Year 1