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Bond discount, entries for bonds payable transactions On July 1, 20Y1, Livingston Equipment Co, a wholesaler of manufacturing equipment, issued $1,400,000 of 9 -year, 11%

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Bond discount, entries for bonds payable transactions On July 1, 20Y1, Livingston Equipment Co, a wholesaler of manufacturing equipment, issued $1,400,000 of 9 -year, 11% bonds at a market (effective) interest rate of 12%, receiving cash of $1,324,201. 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, 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 1,20Y1. 20 2. Journalize the entries to record the following: a. The first semiannual interest payment on December 31, 20Y1, and the amortization of the bond discount, using the straight-line method, Round to the nearest dollar. 20 b. The interest poyment on June 30,20Y2, and the amortization of the bond discount, using the straight-line method. Round to the nearest dollar. 2. Journaige the entries to record the following: a. The first semiannual interest payment on December 31,20Y, and the amortiration of the bond discount, using the straight-line method. Round to the nearest doltar. b. The interest payment on June 30, 20r2, and the amortization of the bond discount, using the straight-line method. Round to the nearest dollar. 3. Determine the total interest expense for 20r2. 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 market rate of interest? 5. Compute the price of $1,324,201 received for the bonds by using the Present value at compound interest, and Present value of an annuity, Round your PV valu to 5 decimal places and the final answers to the nearest dollar, Your total may vary silghtly from the price given due to rounding differences

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