Bond Discount, Entries for Bonds Payable Transactions On 2uly 1, Year 1, Danzer Industries Inc issued $3,000,000 of 9 year, 10% bonds at a market (effective) interest rate of 11%, receiving cash of 52,831,321. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year: Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1 . If an amount bex does not require an entry, leave it blank. T Crack My Wonk Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account: The straight-ine method of amortization provides equal amounts of amortization over the life of the bond. Learning objective 2. 2. Journalize the entries to record the following: If an amount box does not require an entry, leave it blank. a. The first semiannual interest payment on December 31, Year 1 , and the amortization of the bond discount, using the straight-line method. (Round your answer to the 2. Journalize the entries to record the following: If an amount box does not require an entry, leave it blank. a. The first semiannual interest payment on December 31, Year 1 , and the amortization of the bond discount, using the straight-tine method. (Round your answer to the nearest dollar.) Feoctack. T Check My Wore Bonds Payable is always recorded at face value. Afry difference in issue price is reflected in a premium or discount account: The straight-line method of amortization provides equal amounts of amortization over the life of the bond. Leaming Objective 2. b. The interest payment on June 30, Year 2 , and the amortization of the bond discount, using the straight-line method. (Round your answer to the nearest dollar) Vestaxa roteak My hos Bonds Payable is always recorded at face valuet. Any difference in issue price is refiected in a premium or discount account. 3. Determine the total interest expense for Year 1. Round to the nearest dollar. 4. Will the band proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest? 5. Compute the price of $2,831,321 recelved for the bonds by using Exhibit 5 and Exhibit 7 . (Aound you pr values to 5 decimal places and the final answers to the ncarest dollar) Your total may yary sllabtiy from the price given due to mounding differences