Bond Discount, Entries for Bonds Payable Transactions On July 1, Year 1, Livingston Gorporation, a wholesaler of manufacturing equipment, issued $4,900,000 of 9.y ear. 9% bonds at a market (effective) Interest rate of 10%, recelving cash of $4,613,604. interest on the bonds is payable semiannually on December 31 and June 30 . The fiscal year of the compariy is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1 , Year 1. For a combound transaction, if an amount box does not require an entry, leave it blank. Feodback T 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 life of the bond. 2. Journalize the entries to record the following: For a compound transaction, if an amount box does not require an entry, leave 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 bond discount, using the straight-line method. b. The interest payment on June 30 , Year 2 , and the amortization of the bond discount, using the straight-line pathad Feedback r check My Work Partially correct 3. Determine the total interest expense for Year 1. 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 Cnmnute the orice of $4,613,604 received for the bonds by using Table 1, Table 2 , Table 3 and Table 4. s