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Hillside issues $1,400,000 of 5%, 15-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31 Problem 14-2A (Algo) Straight-Line:

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Hillside issues $1,400,000 of 5%, 15-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31 Problem 14-2A (Algo) Straight-Line: Amortization of bond premium LO P3 The bonds are issued at a price of S1,713,594. Required: 1. 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 216) For each semiannual period, complete the table below to calculate the straight-line premium amortization 2 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 a straight-line amortization table 5. Prepare the journal entries to record the first two interest payments 2 Journal entry worksheet Record the issue of bonds with a par value of $1,400,000 on January 1, 2021 at an issue price of $1,713,594. II Note: Enter debits before credits nces Date General Journal Debid Credit January 01 Required information Reg 1 Req 2A to 20 Reg 3 Reg 4 Reg 5 For each semiannual period, compute (a) the cash payment. (b) the straight line premium amortization, and (c) the bond interest exper answers to the nearest whole dollar.) Par (maturity value Annual Rate Year Semiannual cash interest payment 2(a) Bond price Par (maturity value) Premium on Bonds Payable Semiannual periods Straight line premium amortization 2(b) Semiannual cash payment Premium amortization Bond interest expense 210) Required infine con Reg Req 2A to 20 Reg 3 Reg 4 Req 5 Complete the below table to calculate the total bond interest expense to be reco Total bond interest expense over life of bonds: Amount repaid payments of Par value at maturity Total repaid Less amount borrowed 0 Total bond interest expense $ 0 Req 1 Req 2A to 20 Req 3 Reg 4 Req 5 Prepare the first two years of a straight-line amortization table. (Round your intern whole dollar.) Carrying Value Semiannual Period- Unamortized End Premium 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 Journal ery worksheet

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