Bond Discount, Entries for Bonds Payable Transactions

June $30.$ The fiscal year of the company is the calendar year.

Required:

Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July $1,$ Year $1.$ If an amount box does not require an entry, leave it blank.

Journalize the entries to record the following: If an amount box does not require an entry, leave it blank. Round your answer to the nearest dollar.

a$.$ The first semiannual interest payment on December $31,$ Year $1,$ and the amortization of the bond discount, using the straight$-$line method.

b$.$ The interest payment on June $30,$ Year $2,$ and the amortization of the bond discount, using the straight$-$line method.

Determine the total interest expense for Year $1.$ Round to the nearest dollar.

$

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?

Present value of the face amount $

Present value of the semiannual interest payments

Price received for the bonds

$