Bond Discount, Entries for Bonds Payable Transactions On July 1, 2011, Livingston Corporation, a wholesaler of manufacturing equipment, issued $4,500,000 of 10-year, 9% bonds at a market effective) interest rate of 10%, receiving cash of 54,219,603. 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, it an amount box does not require an entry, leave it blank. 1. Journalize the entry to record the amount of cash proceeds from the Issuance of the bonds on July 1, 2011 Cash Discount on Bonds Payable Bonds Payable Esedad 2. Journalize the entries to record the following: a. The first semiannual interest payment on December 31, 20Y1, and the amortization of the bond Giscount, using the straight-line method, Round to the nearest doltar. Interest Expense X Discount on Bonds Payable x Cash 2. Joumalize the entries to record the following: a. The first semiannual interest payment on December 31, 2011, and the amortization of the bond discount, using the straight-line method. Round to the nearest dollar Interest Expense Discount on Bonds Payable Cash 88 Feedback b. The interest payment on June 30, 2012, and the amortization of the bond discount, using the straight-line method. Round to the nearest dollar, Interest Expense Discount on Bonds Payable 99 X Cash Feedback 3. Determine the total interest expense for 2011. Round to the nearest dollar 4. Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the matter inter? Interest Expense Discount on Bonds Payable 28 X Cash Feedback 3. Determine the total interest expense for 2011. 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? Yes 5. Compute the price of $4,219,603 received for the bonds by using the present value tables in Appendix A. Round your PU values to 5 decimal places and the final answers to the nearest dollar. Your total may vary slightly from the price given due to rounding differences Present value of the face amount Present value of the semiannual interest payments Price received for the bonds