February $26$ The company paid cash to Lyn Addie for eight days' work at $$120$ per day. Use the following information for the Problems below. $($Algo$)$

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

Hillside issues $$2,400,000$ of $9\%,15-$year bonds dated January $1,2021,$ that pay interest semiannually on June $30$ and

December $31.$

Problem $10-2$A $($Algo$)$ Straight$-$Line: Amortization of bond premium LO P$3$

The bonds are issued at a price of $$2,937,590.$

Required:

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

$2($a$)$ For each semiannual period, complete the table below to calculate the cash payment.

$2($b$)$ For each semiannual period, complete the table below to calculate the straight$-$line premium amortization.

$2($c$)$ For each semiannual period, complete the table below to calculate the bond interest expense.

Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life.

Prepare the first two years of a straight$-$line amortization table.

Prepare the journal entries to record the first two interest payments.

Complete this question by entering your answers in the tabs below.

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

Journal entry worksheet

$1$

Record the issue of bonds with a par value of $$2,400,000$ on January $1,2021$

at an issue price of $$2,937,590.$

Note: Enter debits before credits.

March $25$ The company sold merchandise with a $$2,800$ cost for $$2,900$ on credit to Wildcat Services, invoice dated March $25.$

Required:

Assume that Lyn Addie is an unmarried employee. Her $$960$ of wages have deductions for FICA Social Security taxes, FICA Medicare taxes, and federal income taxes. Her federal income taxes for this pay period total $$96.$ Compute her net pay for the eight days' work paid on February $26.$

Record the journal entry to reflect the payroll payment to Lyn Addie as computed in part $1.$

Record the journal entry to reflect the $($employer$)$ payroll tax expenses for the February $26$ payroll payment. Assume Lyn Addie has not met earnings limits for FUTA and SUTA $($the FUTA rate is $0\mathrm{.}6\%$ and the SUTA rate is $5\mathrm{.}4\%$ for the company$).$

Record the entries for the merchandise sold on March $25$ if a $4\%$ sales tax rate applies.