Heathrow issues $2,200,000 of 7%, 15-year bonds dated January 1, 2011, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $2,692,790.

Required:
1.	Prepare the January 1, 2011, journal entry to record the bonds%u2019 issuance. (Omit the "$" sign in your response.)

Date	General Journal	Debit	Credit
Jan. 1	(Click to select) Bonds payable Cash Premium on bonds payable Discount on bonds payable Accounts receivable Bond interest expense Accounts payable Bond interest payable
	(Click to select) Bond interest expense Cash Bond interest payable Discount on bonds payable Bonds payable Accounts payable Premium on bonds payable Accounts receivable
	(Click to select) Accounts payable Bonds payable Bond interest expense Discount on bonds payable Premium on bonds payable Accounts receivable Bond interest payable Cash

2(a)	For each semiannual period, compute the cash payment. (Omit the "$" sign in your response.)

Cash payment

$

2(b)	For each semiannual period, compute the the straight-line premium amortization. (Round your answer to the nearest dollar amount. Omit the "$" sign in your response.)

Amount of premium amortized

$

2(c)	For each semiannual period, compute the the bond interest expense. (Omit the "$" sign in your response.)

Bond interest expense

$

3.	Determine the total bond interest expense to be recognized over the bonds' life. (Omit the "$" sign in your response.)

Total bond interest expense

$

4.	Prepare the first two years of an amortization table using the straight-line method. (Omit the "$" sign in your response.)

Semiannual Period-End	Unamortized Premium	Carrying Value
1/01/2011	$	$
6/30/2011
12/31/2011
6/30/2012
12/31/2012

5.	Prepare the journal entries to record the first two interest payments. (Omit the "$" sign in your response.)

Date	General Journal	Debit	Credit
June 30	(Click to select) Cash Accounts receivable Bond interest payable Accounts payable Premium on bonds payable Discount on bonds payable Bonds payable Bond interest expense
	(Click to select) Bond interest expense Bond interest payable Accounts receivable Bonds payable Cash Discount on bonds payable Premium on bonds payable Accounts payable
	(Click to select) Discount on bonds payable Bond interest payable Bond interest expense Premium on bonds payable Accounts receivable Cash Bonds payable Accounts payable
Dec. 31	(Click to select) Discount on bonds payable Bonds payable Bond interest expense Cash Bond interest payable Premium on bonds payable Accounts payable Accounts receivable
	(Click to select) Bond interest expense Premium on bonds payable Bonds payable Accounts payable Accounts receivable Discount on bonds payable Cash Bond interest payable
	(Click to select) Discount on bonds payable Accounts payable Accounts receivable Premium on bonds payable Bond interest expense Bond interest payable Bonds payable Cash