Legacy issues $$580,000$ of $8\mathrm{.}0\%,$ four$-$year bonds dated January $1,2021,$ that pay interest semiannually on June $30$ and December $31.$ They are issued at $$507,959$ when the market rate is $12\%.$

Required:

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

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

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

Prepare the journal entries to record the first two interest payments.

Complete this question by entering your answers in the tabs below.

Required $1$

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

Journal entry worksheet

$1$

Record the issue of bonds with a par value of $$580,000$ cash on January $1,2021$ at an issue price of $$507,959.$

Note: Enter debits before credits.

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