Dinstructions Journal On July 1, 2016, Merideth Industries Inc. issued $26,600,000 of 10-year, 9% bonds at a market 1. and 2. Journalize the entries to record the transactions. Be sure to include the year in the date for the entries. Refer (effective) interest rate of 10%, receiving cash of $24,942,539. Interest on the bonds is payable to the Chart of Accounts for exact wording of accou bites. nt semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: PAGE 10 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds JOURNAL on July 1, 2016. 2. Journalize the entries to record the following:* DATE DESCRPTION POST, RET, Jul 1.2016 Cash 24,94253900 a. The first semiannual interest payment on December 31, 2016, and the amortization of the bond discount, using the straight-line method. (Round to the nearest dollar.) Discount on Bonds Payable 165746100 Bonds payable b. The interest payment on June 30, 2017, and the amortization of the bond discount, 26,600,000.00 using the straight-line method. (Round to the nearest dollar.) 4 Dec 31, 2016 Interest Expense 3. Determine the total interest expense for 2016. Discount on Bonds Payable 828,731.00 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? Nn 30, 2017 Interest Expense Discount on Bonds Payable 828,731.00 Cash