Hillside issues $$2,600,000$ of $5\%,15-$year bonds dated January $1,2021,$ that pay interest semiannually on June $30$ and December $31.$

Problem $10-1$A $($Algo$)$ Straight$-$Line: Amortization of bond discount LO P$2$

The bonds are issued at a price of $$2,246,690.$

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.

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

$5.$ Prepare the journal entries to record the first two interest payments.