Bond Discount, Entries for Bonds Payable Transactions On July 1, Year 1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $3,300,000 of 8 year, 9 bands at a market (affective interest rate of 115, receiving cash cf $2,954,747. Interest on the bands is payable semiannually on December 3: and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to read the amount of cash proceeds from the issuance of the bands on July 1, Year 1. 1 an annount bax does not require an entry, leave it blank Cash Discount on Bonds P Bonds Payal Fancback track My Work Bonds Payable t always recorded at face value. Any difference in issue price is reflected in a premium or discount account 2. Journalize the entries to record the following: If an amount box does not require an entry, leeve t blank. Round your answer to the nearest dollar. a. The first semiannual Interest payment on December 31, Year 1, and the amortization of the bord discount, using the straight-line method. Interest Expe Discount on Blonds Cash Teeback Check My Work Pents Payable is always recorded the value. Any difference in se price is reflected in a prerrium or discourt acount. The straight-line method of amartization provides equal amounts of amortization over the life of the bond. b. The interest payment on June 30, Year 2, and the amortization of the band discount, using the straiin-linc method Interest Expe Discount on Bonds P Cash Feetak Check My Work Bonds Payable is always recorded at face value. Any 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 Ife of the bond. 3. Determine the total interest expense for Year 1. Round to the nearest dallar. $ 4. Will the band proceeds always be less than the face amount of the bands when the contact rate is less than the market rate of interest? Yes 5. Compute the price of $2,954,747 received for the bands by using the Present value at compound interest, and Present value of an annuity. (Round to the nearest dallar.) Your total may vary slightly from the price given due ta reunding differences Present value of the face amount $ Present value of the manual interest payment Price received for the bonds $