Bond Discount, Entries for Bonds Payable Transactions Pri tem On July 1, Year 1. Livingston Corporation, a wholesaler of manufacturing equipment, issued $5,200,000 of 5-year, 10% bonds at a market (effect) werest rate of 12 receiving cash of $4,817,276. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal 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 July 1 Year 1. For a compound transaction, an amount box does not require an entry, leave it blank. 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 method. 11 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? 2. Journalize the entries to record the following: For a compound transaction, if an amount box does not require an entry leave it around your worst 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 bondscount, the method 88 59 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 S. Compute the price of $4,817,276 received for the bonds by using Table 1, Table 2. Table 3 and Table 4. (Round to the nearest dolar) Your tutal may vary wightly 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 Previous Ned Check My Work Sus for Gang Save and UTAN