Instructions Present Value Tables Chart of Accounts Journal Final Questions Instructions On July 1, 2011, Danzer Industries Inc. issued $48.000.000 of 10-year, 9% bonds at a market ective) interest rate of 11%, receiving cash of $42,968,258. Interest on the bonds is payal year of the company is the calendar year. Required: 1. Joumalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 2011. 2. Journalize the entries to record the following a. The first semiannual interest payment on December 31, 2011, and the amortization of the bond discount, using the straight-line method (Round to the nearest dollar) b. The interest payment on June 30, 2012, and the amortization of the bond discount, using the straight-line method. (Round to the nearest dollar) 3. Determine the total interest expense for 2011 4 Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest? DATE 4 JUL 1 Cash 2 Discount on Bonds Payable Bonds Payable DESCRIPTION Interest Expense Discount on Bonds Payable Cash POST RET DOBIT CREDIT ASSETS LIABILITIES CQUITY 42,968,258.00 5,831,742.00 48,800,000.00