Hillside issues $2,600,000 of 5%, 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 $2,246,690. 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. Complete this question by entering your answers in the tabs below. Req 1 Req 2A to 2C Req3 Req 4 Req 5 Prepare the January 1, 2017, journal entry to record the bonds' issuance. View transaction list Journal entry worksheet Record the issue of bonds with a par value of $2,600,000 cash on January 1, 2017 at an issue price of $2,246,690. Note: Enter debits before credits. General Journal Debit Credit Date Jan 01, 2017 Record entry Clear entry View general journal Req 1 Req 1 Req 24 to 2C Req3 Reg 4 Reg 5 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 Req 1 Req 2A to 20 Req 3 Req 4 Req 5 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 Less amount borrowed Total bond interest expense Req 1 Regt Req 2A to 2C Reg za to 2C Req3 Reg Req 4 Regia Reg 5 Rags Prepare the first two years of an amortization table using the straight-line method. Semiannual Period- Unamortized End Discount 01/01/2017 Carrying Value 06/30/2017 12/31/2017 06/30/2018 12/31/2018 Req 1 Req1 Req 2A to 2C Reg za to 2C Req 3 Reg 3 Req 4 Reg4 Reg 5 Reg 5 Prepare the journal entries to record the first two interest payments. View transaction list Journal entry worksheet Record the first interest payment on June 30, 2017. Note: Enter debits before credits. General Journal Debit Credit Date Jun 30, 2017 Record entry Clear entry View general journal Req 1 Req 2A to 20 Req3 Reg 4 Req 5 Prepare the journal entries to record the first two interest payments. View transaction list Journal entry worksheet
