Ivanhoe, a Crown corporation owned by the government, issued bonds to finance the construction of the next generation of observation satellites. On January $1,2024,$ Ivanhoe issued $7\%,15-$year bonds with a face value of $$160,000,000.$ The bonds will pay interest semi$-$annually on June $30$ and December $31.$

Prepare the journal entries to record the first interest expense for alternatives $($i$),($ii$),$ and $($iii$)$ above.

No$.$ Account Titles and Explanation

Debit

Credit

i$.$

ii$.$

iii.

The amount of cash Ivanhoe will receive if the bonds are sold under each of the following bond alternatives:

i$.7\%($issued at par$)$

ii$.$ a price of $95\mathrm{.}542$ to yield $7\mathrm{.}5\%$

iii. a premium in the amount of $$7,600,000$ and first interest expense of $$5,447,000$

Cash Received

i$.$ $$160,000,000$

ii$.$ $$152,867,200$

iii. $$167,600,000$