e Journal entry worksheet

$1$

Record the issue of bonds with a par value of $$120,000$ on January $1,2021$ at

an issue price of $$123,044.$

Note: Enter debits before credits. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. Prepare an effective interest amortization table for the bonds' first two years.

Note: Round your intermediate and final answers to the nearest whole dollar.

$\backslash$table$[[\backslash$table$[[$Semiannual Interest$],[$Period$-$End$]],\backslash$table$[[$Cash Interest$],[$Paid$]],\backslash$table$[[$Bond Interest$],[$Expense$]],\backslash$table$[[$Premium$],[$Amortization$]],\backslash$table$[[$Unamortized$],[$Premium$]],$Carrying Value$],[01/01/2021,,,,,],[06/30/2021,,,,,],[12/31/2021,,,,,],[06/30/2022,,,,,],[12/31/2022,,,,,]]$Prepare the journal entries to record the first two interest payments.!

Required information

$[$The following information applies to the questions displayed below.$]$

Ike issues $$120,000$ of $11\%,$ three$-$year bonds dated January $1,2021,$ that pay interest semiannually on June $30$

and December $31.$ They are issued at $$123,044$ when the market rate is $10\%.$

Required:

Prepare the January $1$ journal entry to record the bonds' issuance.