Hillside issues $2,700,000 of 7%, 15-year bonds dated January 1, 2013, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $2,333,101.

Required: 1.

Prepare the January 1, 2013, journal entry to record the bonds issuance.

Record the issue of bonds with a par value of $2,700,000 cash on January 1, 2013 at an issue price of $2,333,101.

For each semiannual period, complete the table below to calculate the cash payment.

2) a) par maturity value=

annual rate=

year=

semiannual cash interest payment=

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

par maturity value=

bonds=

discount on bonds payable=

semiannual period=

straight line discount amorization=

(c) For each semiannual period, complete the table below to calculate the bond interest expense.

semiannual cash payment=

discount amorization=

bond interest expense=