Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2015, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $4,895,980.

1. Prepare the January 1, 2015, journal entry to record the bonds' isuuance

2. 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

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

Semiannual Period-End	Unamortized Premium	Carrying Value
01/01/2015		$4,895,980
06/30/2015		4,866,114
12/31/2015		4,836,248
06/30/2016		4,806,382
12/31/2016		4,776,516

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