Legacy issues $550,000 of 9.5%, four-year bonds dated January 1, 2019. that pay interest semiannually on June 30 and December 31. They are issued at $507,301 when the market rate is 12% Problem 14-4A Straight-Line: Amortization of bond discount LO P2 [The following information applies to the questions displayed below.] Legacy issues $550,000 of 9.5%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $507,301 when the market rate is 12%. Problem 14-4A Part 1 Required: 1. Prepare the January 1 journal entry to record the bonds issuance. Problem 14.4A Straight-Line: Amortization of bond discount LO P2 [The following information applies to the questions displayed below. Legacy issues $550,000 of 9.5%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $507,301 when the market rate is 12%. Problem 14-4A Part 2 2. Determine the total bond interest expense to be recognized over the bonds' life. Total bond interest expense over life of bonds: Amount repaid payments of Par value at maturity Total repaid Less amount borrowed Total bond interest expense 0 Problem 14-4A Straight-Line: Amortization of bond discount LO P2 [The following information applies to the questions displayed below.) Legacy issues $550,000 of 9.5%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $507,301 when the market rate is 12%. Problem 14-4A Part 3 3. Prepare a straight-line amortization table for the bonds' first two years. Unamortized Discount Carrying Value Semiannual Period End 01/01/2019 06/30/2019 12/31/2019 06/30/2020 12/31/2020 Legacy issues $550,000 of 9.5%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $507,301 when the market rate is 12%. Problem 14-4A Part 4 4. Prepare the journal entries to record the first two interest payments. View transaction list Journal entry worksheet