Hillside issues $2,500,000 of 6%, 15-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $2,160,279. Required:

1. Prepare the January 1, 2017, 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 an amortization table using the straight-line method. 5. Prepare the journal entries to record the first two interest payments.

1. Record the issue of bonds with a par value of $2,500,000 cash on January 1, 2017 at an issue price of $2,160,279.

2.

For each semiannual period, complete the table below to calculate the cash payment, straight-line discount amortization and bond interest expense.

Par (maturity) value		Annual Rate		Year		Semiannual cash interest payment
					=
Par (maturity) value		Bonds price		Discount on Bonds Payable		Semiannual periods		Straight-line discount amortization
			=				=
Semiannual cash payment		Discount amortization		Bond interest expense
			=

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 of
Par value at maturity
Total repaid			0
Less amount borrowed
Total bond interest expense			$0

4.

Prepare the first two years of an amortization table using the straight-line method.

Semiannual Period-End	Unamortized Discount	Carrying Value
01/01/2017
06/30/2017
12/31/2017
06/30/2018
12/31/2018

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

record the first interes payment for june 30 ,2017

record the second interest payment for December 31, 2017