Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $4,895,980. 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 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 a straight-line amortization table. 5. Prepare the journal entries to record the first two interest payments.

1. Record the issue of bonds with a par value of $4,000,000 on January 1, 2019 at an issue price of $4,895,980.

For each semiannual period, compute (a) the cash payment, (b) the straight-line premium amortization, and (c) the bond interest expense.

2(a)	Par (maturity) value		Annual Rate		Year		Semiannual cash interest payment
						=
2(b)	Bond price		Par (maturity value)		Premium on Bonds Payable		Semiannual periods		Straight-line premium amortization
				=				=
2(c)	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 a straight-line amortization table.

Semiannual Period-End	Unamortized Premium	Carrying Value
01/01/2019
06/30/2019
12/31/2019
06/30/2020
12/31/2020

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

• 1. Record the first interest payment on June 30.

• 2. Record the second interest payment on December 31.