Legacy issues $325,000 of 5%, four-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. They are issued at $292,181 and their market rate is 8% at the issue date. Required: 1. Prepare the January 1, 2017, 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. 4. Prepare the journal entries to record the first two interest payments.

Prepare an effective interest amortization table for the bonds first two years.

Semiannual Interest Period-End	Cash Interest Paid	Bond Interest Expense	Discount Amortization	Unamortized Discount	Carrying Value
01/01/2017				$32,819	$292,181
06/30/2017	$8,125	$9
12/31/2017	8,125
06/30/2018	8,125
12/31/2018	8,125

Required 2