July 1, 20Y1, Danzer Industries Inc. issued $60,000,000 of 10-year, 8% bonds at a market (eflective) interest rate of 10%, recelving cash of $52.522,704, Intorest on the bonds is ayable semiannually on December 31 and June 30 . The fiscal year of the company is the calendar yoar. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on Jhy 1,20Y1. 2. Journalize the entries fo record the following: a. The first semiannual interest payment on December 31,20YY, and the amortization of the bond discount, using the straight ine method: b. The interest payment on June 30,20Y, and the amortization of the bond discount, using the straight-aine method. 3. Dotermine the fotal interest expense for 20Y1. 4. Wil the bond proceeds ahways be lese than the face amoun of the bonds when the contract rute is less than the market rate of interest? 5. Compute the price of $52,522,704 recelved for the bonds by using the present value tables. Two prosent value tables are provided: Present Value of 51 at Cornpound interest Due in n Penibds and Prosert Value of Ordinary Annuly of 51 per Periad Use them at drected in the problem requirements Present Value of 51 at Compound Interest Due in n Periods 45500.171200.140710.137960.110710.111300.087200.089880.068770.072650.054290.058790.042910.047610.03395 Present Value of Ordinary Annuity of $1 per Period \begin{tabular}{cccccccc} \hline Periods & 4.0% & 4.5% & 5% & 5.5% & 6% & 6.5% & 7% \\ \hline 1 & 0.96154 & 0.95694 & 0.95238 & 0.94787 & 0.94340 & 0.93897 & 0.93458 \\ \hline 2 & 1.88609 & 1.87267 & 1.85941 & 1.84632 & 1.83339 & 1.82063 & 1.80802 \\ 3 & 2.77509 & 2.74896 & 2.72325 & 2.69793 & 2.67301 & 2.64848 & 2.62432 \\ \hline 4 & 3.62990 & 3.58753 & 3.54595 & 3.50515 & 3.46511 & 3.42580 & 3.38721 \\ \hline 5 & 4.45182 & 4.38998 & 4.32948 & 4.27028 & 4.21236 & 4.15568 & 4.10020 \\ \hline 6 & 5.24214 & 5.15787 & 5.07569 & 4.99553 & 4.91732 & 4.84101 & 4.76654 \\ 7 & 6.00205 & 5.89270 & 5.78637 & 5.68297 & 5.58238 & 5.48452 & 5.38929 \\ \hline 8 & 6.73274 & 6.59589 & 6.46321 & 6.33457 & 6.20979 & 6.08676 & 5.97130 \\ 9 & 7.43533 & 7.26879 & 7.10782 & 6.95220 & 6.80169 & 6.65610 & 6.51523 \\ 10 & 8.11090 & 7.91272 & 7.72173 & 7.53763 & 7.36009 & 7.18683 & 7.02356 \\ 11 & 8.76048 & 8.52892 & 8.30641 & 8.09254 & 7.88687 & 7.68904 & 7.49867 \\ \hline 12 & 9.38507 & 9.11858 & 8.86325 & 8.61852 & 8.38384 & 8.15873 & 7.94269 \\ 13 & 9.98565 & 9.68286 & 9.39357 & 9.11708 & 8.85268 & 8.59974 & 8.35765 \\ \hline 14 & 10.56312 & 10.22283 & 9.69664 & 9.56965 & 9.29498 & 9.01384 & 8.74547 \\ \hline 15 & 11.11838 & 10.73955 & 10.37966 & 10.03758 & 9.71225 & 9.40267 & 9.10791 \\ \hline 16 & 11.65230 & 11.23402 & 10.83777 & 10.46216 & 10.10590 & 9.76776 & 9.44665 \\ \hline \end{tabular} Present Value Tables \begin{tabular}{lllllllll} 16 & 11.65230 & 11.23402 & 10.83777 & 10.46216 & 10.10590 & 9.76776 & 9.44665 \\ \hline 17 & 12.16567 & 11.70719 & 11.27407 & 10.86461 & 10.47726 & 10.11058 & 9.76322 \\ \hline 18 & 12.65930 & 12.15999 & 11.68959 & 11.24607 & 10.82760 & 10.43247 & 10.05909 \\ \hline 19 & 13.13394 & 12.59329 & 12.08532 & 11.60765 & 11.15812 & 10.73471 & 10.33560 \\ \hline 20 & 13.59033 & 13.00794 & 12.46221 & 11.95038 & 11.46992 & 11.01851 & 10.59401 \\ \hline 21 & 14.02916 & 13.40472 & 12.82115 & 12.27524 & 11.76408 & 11.28498 & 10.83553 \\ \hline 22 & 14.45112 & 13.78442 & 13.16300 & 12.58317 & 12.04158 & 11.53520 & 11.06124 \\ \hline 23 & 14.85684 & 14.14777 & 13.48857 & 12.87504 & 12.30338 & 11.77014 & 11.27219 \\ \hline 24 & 15.24696 & 14.49548 & 13.79864 & 13.15170 & 12.55036 & 11.99074 & 11.46933 \\ \hline 25 & 15.62208 & 14.82821 & 14.09394 & 13.41393 & 12.78336 & 12.19788 & 11.65358 \\ \hline 26 & 15.98277 & 15.14661 & 14.37519 & 13.66250 & 13.00317 & 12.39237 & 11.82578 \\ \hline 27 & 16.32959 & 15.45130 & 14.64303 & 13.89810 & 13.21053 & 12.57500 & 11.98671 \\ \hline 28 & 16.66306 & 15.74287 & 14.89813 & 14.12142 & 13.40616 & 12.74648 & 12.13711 \\ \hline 29 & 16.98371 & 16.02189 & 15.14107 & 14.33310 & 13.59072 & 12.90749 & 12.27767 \\ \hline 30 & 17.29203 & 16.28889 & 15.37245 & 14.53375 & 13.76483 & 13.05868 & 12.40904 \\ \hline 31 & 17.58849 & 16.54439 & 15.59281 & 14.72393 & 13.92909 & 13.20063 & 12.53181 \\ \hline 32 & 17.87356 & 16.78689 & 15.80268 & 14.90420 & 14.08404 & 13.33393 & 12.64656 \\ \hline 33 & 18.14765 & 17.02286 & 16.00256 & 15.07507 & 14.23023 & 13.45009 & 12.76379 \\ \hline 34 & 18.41120 & 17.24676 & 16.19200 & 15.23703 & 14.38814 & 13.57661 & 12.85401 \\ \hline 35 & 18.66461 & 17.46101 & 16.37419 & 15.39055 & 14.49825 & 13.68696 & 12.94767 \\ \hline 40 & 19.70277 & 18.40158 & 17.15900 & 16.04612 & 15.04630 & 14.14553 & 13.33171 \\ \hline \end{tabular} \begin{tabular}{llllllllll} 19 & 13.13394 & 12.59329 & 12.08532 & 11.60765 & 11.15812 & 10.73471 & 10.33560 \\ \hline 20 & 13.59033 & 13.00794 & 12.46221 & 11.95038 & 11.46992 & 11.01851 & 10.59401 \\ \hline 21 & 14.02916 & 13.40472 & 12.82115 & 12.27524 & 11.76408 & 11.28498 & 10.83553 \\ \hline 22 & 14.45112 & 13.78442 & 13.16300 & 12.58317 & 12.04158 & 11.53520 & 11.06124 \\ \hline 23 & 14.85684 & 14.14777 & 13.48857 & 12.87504 & 12.30338 & 11.77014 & 11.27219 \\ \hline 24 & 15.24696 & 14.49548 & 13.79864 & 13.15170 & 12.55036 & 11.99074 & 11.46933 \\ \hline 25 & 15.62208 & 14.82821 & 14.09394 & 13.41393 & 12.78336 & 12.19788 & 11.65358 \\ \hline 26 & 15.98277 & 15.14661 & 14.37519 & 13.66250 & 13.00317 & 12.39237 & 11.82578 \\ \hline 27 & 16.32959 & 15.45130 & 14.64303 & 13.89810 & 13.21053 & 12.57500 & 11.98671 \\ \hline 28 & 16.66306 & 15.74287 & 14.89813 & 14.12142 & 13.40616 & 12.74648 & 12.13711 \\ \hline 29 & 16.98371 & 16.02189 & 15.14107 & 14.33310 & 13.59072 & 12.90749 & 12.27767 \\ \hline 30 & 17.29203 & 16.28889 & 15.37245 & 14.53375 & 13.76483 & 13.05868 & 12.40904 \\ \hline 31 & 17.58849 & 16.54439 & 15.59281 & 14.72393 & 13.92909 & 13.20063 & 12.53181 \\ \hline 32 & 17.87355 & 16.78889 & 15.80268 & 14.90420 & 14.08404 & 13.33393 & 12.64656 \\ \hline 33 & 18.14765 & 17.02286 & 16.00255 & 15.07507 & 14.23023 & 13.45909 & 12.75379 \\ \hline 34 & 18.41120 & 17.24676 & 16.19290 & 15.23703 & 14.36814 & 13.57661 & 12.85401 \\ \hline 35 & 18.66461 & 17.46101 & 16.37419 & 15.39055 & 14.49825 & 13.68696 & 12.94767 \\ \hline 40 & 19.79277 & 18.40158 & 17.15909 & 16.04612 & 15.04630 & 14.14553 & 13.33171 \\ \hline 45 & 20.72004 & 19.15635 & 17.77407 & 16.54773 & 15.45583 & 14.48023 & 13.60552 \\ \hline 50 & 21.48218 & 19.76201 & 18.25593 & 16.93152 & 15.76186 & 14.72452 & 13.80075 \\ \hline \end{tabular} Danzer Industries Inc. General Ledger 126 Interest Receivable EXPENSES 127 Notes Receivable 510 Cost of Merchandise Sold 131 Merchandise Inventory 515 Credit Card Expense 141 Olfice Supplies 516 Cash Short and Over 142 Store Supplies 521 Sales Salaries Expense 151 Prepaid Insurance 522 Office Salaries Expense 191 Land 531 Advertising Expense 192 Store Equipment 532 Delivery Expense 193 Accumulated Depreciation-Store Equipment 533 Repairs Expense 194 Office Equipment 534 Selling Expenses 195 Accumulated Depreciation-Office Equipment 535 Rent Expense 536 Insurance Expense LIABILITIES 537 Office Supplies Expense 210 Accounts Payable 538 Store Supplies Expense 221 Salaries Payable 541 Bad Debt Expense 231 Sales Tax Payable 561 Depreciation Expense-Store Equipment 232 Interest Payable 562 Depreciation Expenso-Office Equipment 241 Notes Payable 590 Miscellaneous Expense 251 Bonds Payable 710 Interest Expense 210 Accounts Payable 538 Store Supplies Expense 221 Salaries Payable 541 Bad Debt Expense 231 Sales Tax Payable 561 Depreciation Expense-Store Equipment 232 Interest Payable 562 Depreciation Expense-Office Equipment 241 Notes Payable 590 Miscellaneous Expense 251 Bonds Payable 710 Interest Expense 252 Discount on Bonds Payable 711 Loss on Redemption of Bonds 253 Premium on Bonds Payable EQUITY 311 Common Stock 312 Paid-In Capital in Excess of Par-Common Stock 315 Treasury Stock 321 Preferred Stock . 322 Paid-In Capital in Excess of Par-Preferred Stock 331 Paid-In Capital from Sale of Treasury Stock 340 Retained Earnings 351 Cash Dividends 352 Stock Dividends 1. Joumatze the entry to record the amount of cash procends from the issuance of the bonds on Juy 1,20YI. 2a. Joumalie the enty to record the first semiannual interest payment on December 31, 20rt, and the amoritation of the bond discount using the straighitine method. Genernidoumal inatrictions How doss sratlins work? All trensactions an this pege muat he entered (ekcept for pout ref(o)) before you will receire Check My Work feedbock