Legacy issues $690,000 of 7.0%, four-year bonds dated January 1, 2015, that pay interest semiannually on June 30 and December 31. They are issued at $623,078 and their market rate is 10% at the issue date.

Prepare the January 1, 2015, journal entry to record the bonds' issuance.

*Record the issue of bonds with a par value of $690,000 cash on January 1, 2015 at an issue price of $623,078.*

date	general journal	debit	credit
Jan. 01, 2015	?	?	?
	?	?	?
	?	?	?
	?	?	?
	?	?	?
	?	?	?

*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	0
Less amount borrowed	?
Total bond interest expense	$ 0

*Prepare a straight-line amortization table for the bonds' first two years.*

Semiannual periodend	Unamortized discount	carrying value
01/01/2015	?	?
06/30/2015	?	?
13/31/2015	?	?
06/30/2016	?	?
12/31/2016	?	?

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

*Record the interest payment and amortization on June 30, 2015.*

Date	General Journal	Debit	Credit
Jun 30, 2015	?	?	?
	?	?	?
	?	?	?
	?	?	?
	?	?	?
	?	?	?

Record the interest payment and amortization on December 31, 2015.

Date	General Journal	Debit	Credit
Dec 31, 2015	?	?	?
	?	?	?
	?	?	?
	?	?	?
	?	?	?
	?	?	?