Ike issues $190,000 of 13%, three-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $194,679 when the market rate is 12%.

Required: 1. Prepare the January 1 journal entry to record the bonds' issuance.

2. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life.

3. Prepare an effective interest amortization table for the bonds' first two years. Note: Round your intermediate and final answers to the nearest whole dollar.

4. Prepare the journal entries to record the firs

Record the issue of bonds with a par value of $190,000 on January 1, 2021 at an issue price of $194,679. Note: Enter debits before credits. Total bond interest expense over life of bonds: Amount repaid: \begin{tabular}{|l|l|} \hline \multicolumn{1}{|c|}{ Par value at maturity } & \\ \hline Total repaid & \\ \hline Less amount borrowed & \\ \hline Total bond interest expense & $ \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline \begin{tabular}{c} Semiannual Interest \\ Period-End \end{tabular} & \begin{tabular}{c} Cash Interest \\ Paid \end{tabular} & \begin{tabular}{c} Bond Interest \\ Expense \end{tabular} & \begin{tabular}{c} Premium \\ Amortization \end{tabular} & \begin{tabular}{c} Unamortized \\ Premium \end{tabular} & Carrying Value \\ \hline 01/01/2021 & & & & & \\ \hline 06/30/2021 & & & & & \\ \hline 12/31/2021 & & & & & \\ \hline 06/30/2022 & & & & & \\ \hline 12/31/2022 & & & & & \\ \hline \end{tabular} Record the first interest payment on June 30. Note: Enter debits before credits. Record the second interest payment on December 31. Note: Enter debits before credits