Hillside issues $1,100,000 of 9%, 15-year bonds dated January 1, 2018, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,346,395 Required: 1. Prepare the January 1, 2018, 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 3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life 4. Prepare the first two years of an amortization table using the straight-line methood 5. Prepare the journal entries to record the first two interest payments Answer is not complete Complete this question by entering your answers in the tabs below Req 1 Req 2A to 2C Req 3 Req 4 Req 5 Prepare the January 1, 2018, journal entry to record the bonds' issuance Debit 2,592,334 407,666 Date General Journal Credit Jan 01, 2018 Cash Discount on bonds payable Bonds payable 3,000,000 Complete this question by entering your answers in the tabs below Req 1 Req 3 Req 4 Req 5 Req 2A to 2C oints For each semiannual period, complete the table below to calculate the cash payment, straight-line premium amortization and bond expense. (Round "Unamortized Premium" to whole dollar and use the rounded value for part 4 & 5.) Par (maturity) Semiannual cash interest payment 90,000 Year Annual Rate value 6/12 3,000,000 6% Straight-line premium amortization Premium on Bonds ayable 407,666 Par (maturity value) Semiannual periods Bond price 2,592,334 $ 3,000,000 x 13,589 Semiannual cash payment Premium amortization Bond interest ense 13,589x $ 90,000 103,589 K Req 1 Req 3 Req 4 Req 5 Req 1Req 2A to 2CReq 3 Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life Total bond interest expense over life of bonds Amount repaid payments o Par value at maturity 90,000 s 2,700,000 3,000,000 5,700,000 2,592,334 $ 3,107,666 Total repaid Less amount borrowed Total bond interest expense Req 2A to 2C Req 4 Req 1 Req 2A to 2C Req 3 Req 4 Req 5 Prepare the first two years of an amortization table using the straight-line method Carrying Value Semiannual Period-End 01/01/2018 06/30/2018 12/31/2018 06/30/2019 12/31/2019 Unamortized Premium $407,666 x $ 2,592,334 2,605,923 2,619,512 2,633,101 2,646,690 394,077 380,488 366,899 353,310 K Req 3 Req 1 Req 3 Req 4 Req 5 Req 2A to 2C Prepare the journal entries to record the first two interest payments Debit Date General Journal Credit Jun 30, 2018 Interest payable 103,589 Cash 90,000 Discount on bonds payable 2 Dec 31, 2018 Bond interest expense 103,589 Cash 90,000 13,589 Discount on bonds payable Req4 Req 5
