Bond Discount, Entries for Bonds Payable Transactions on July 1, Year 1. Livingston Corporation, a wholesaler of manufacturing equipment, issued 3,200,000 of 5-year, 11% bonds at a market effective interest rate of 129 receiving cash of $3,082,237. Interest on the bonds is payable semiannually on December 31 and June 30. The scal 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 Buy 2 years at an amount box does not require an entry, Wave blank Cash 3,083.137 Discount on Bonds Payable Bonds Payable 119.76 3,700,000 Check My W Bonds Payable is always recorded at face value. Any difference in price la relacid in a premium de discount count 2. Journalize the entries to record the following: If an amount box does not require an entry, have 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 band discount, using the straight-line method. Interest Expense Discount on Bonds Payable llo Cash 17.00 vace Any difference in se price is reflected in a premium ordiscount account. The straight line method of amortization provides equal amounts of amortization over thee of the bond b. The interest payment on June 30, Year 2, and the amortization of the bond discount, using the straight-line method. Interest Expense Discount on Bonds Payable 100 110 Cash Fedha 3. Determine the total interest expense for Year 1. Round to the nearest dollar. X 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 $3,082,237 received for the bonds by using the present value at compound interest and Present value of an annuty (Round 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