Bond Discount, Entries for Bonds Payable Transactions On July 1, 20Y1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $5,800,000 of 5 -year, 11% bonds at a market (effective) interest rate of 12%%, recelving cash of 55,586,531. Interest on the bonds is payable semiannually an December 31 and June 30 . The fiscal year of the company is the caiendar year. Required: For all journal entries, if 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, 20 . . Freshack F Check My Won Bonds Poyable is always recorded at face value. Any difference in iswe price is reflected in a premium or discount account. 2. Journalite the entries to record the following: a. The first semiannual interest payment on December 31, 20r1, and the amortization of the bond discount, using the straight-line method, Round to the nearest doilar: Festare Fchen Mr wis The straight-line method of amortizstion provides equal amounts of amortization over the life of the bond. 4. 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? 5. Compute the price of 55,586,531 recelved for the bonds by using the present value tables in Appendix A. found your PV 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 diferences. Ferales Thenkinime Calculate the pretent value of the foce amount of the bonds by using the the Present value of si table. Calculate the prasent value of the semiannual interest paymenta by using the piesent value of an Annity of 11 tabie