Complete the problem below on a JOURNAL FORM. Round answers to the nearest dollar.

You must use a journal form to record the transactions and show all calculations to receive credit.

Problem #1

Hillside issues $4,000,000, 6%, 15-year bonds dated January 1, 2018. The bonds pay interest semi-annually on June 30 and December 31. The bonds were issued at $3,456,400.

1. Record the journal entry to issue the bonds on January 1, 2018.

2. a. Record the journal entry to pay the semi-annual interest payment and amortize the discount on June 30, 2018.

b. Record the journal entry to pay the semi-annual interest payment and amortize the discounton Dec. 31, 2018.

4. On March 31, 2024, Hillside calls the bonds at 101. Record the journal entry to call thebonds.

5. What is the total interest expense for the bonds for:

a. One full year?

b. The entire 15-year life of the bond? (if the bond had been held until maturity)

6. What is the carrying value of the bonds on:

a. December 31, 2018?

b. December 31, 2019?