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Bond discount, entries for bonds payable transactions

Present Value Tables

General Journal

$!$ Final Questions

Instructions December $31$ and June $30.$ The fiscal year of the company is the calendar year.

Required:

Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July $1,20Y1.$

Journalize the entries to record the following:

a$.$ The first semiannual interest payment on December $31,20Y1,$ and the amortization of the bond discount, using the straight$-$line method.

b$.$ The interest payment on June $30,20Y2,$ and the amortization of the bond discount, using the straight$-$line method.

Determine the total interest expense for $20Y1.$

Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market raterest?

Compute the price of $$52,522,704$ received for the bonds by using the present value tables.