George's Hamburgers issued 5%, 10-year bonds payable at 85 on December 31, 2016. At December 31, 2018, George reported the bonds payable as follows:

Long-term Liabilities:

Bonds Payable $300,000

Less: Discount on Bonds Payable 36,000 $264,000

George's pays semiannual interest each June 30 and December 31. (Assume bonds payable are amortized using the straight-line amortization method.)

Requirement 1. Answer the following questions about

George's bonds payable:

a. What is the maturity value of the bonds?

____

b. What is the carrying amount of the bonds at December 31, 2018?

____

c. What is the semiannual cash interest payment on the bonds?

_____

d. How much interest expense should the company record each year?

_____

Requirement 2. Record the June 30, 2018, semiannual interest payment and amortization of the discount. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)