Hillside issues $2,800,000 of 8%, 15-year bonds dated January 1, 2018, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $3,427,190.

Required:

1. Prepare the January 1, 2018, 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 premium 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.

Record the issue of bonds with a par value of $2,800,000 cash on January 1, 2018 at an issue price of $3,427,190.

Date	General Journal	Debit	Credit
Jan 01, 2018

For each semiannual period, complete the table below to calculate the cash payment, straight-line premium amortization and bond interest expense. (Round "Unamortized Premium" to whole dollar and use the rounded value for part 4 & 5.)

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

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

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

Semiannual Period-End	Unamortized Premium	Carrying Value
01/01/2018
06/30/2018
12/31/2018
06/30/2019
12/31/2019

Record the first interest payment on June 30, 2018.

Date	General Journal	Debit	Credit
Jun 30, 2018

Record the second interest payment on December 31, 2018.

Date	General Journal	Debit	Credit
Dec 31, 2018