Legacy issues $690,000 of 7.0%, four-year bonds dated January 1, 2017, 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. 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.

1-Record the issue of bonds with a par value of $690,000 cash on January 1, 2017 at an issue price of $623,078.

Date	General Journal	Debit	Credit
Jan 01, 2017

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

Semiannual Interest Period-End	Cash Interest Paid	Bond Interest Expense	Discount Amortization	Unamortized Discount	Carrying Value
01/01/2017
06/30/2017
12/31/2017
06/30/2018
12/31/2018

1-Record the first interest payment on June 30, 2017.

2-Record the second interest payment on December 31, 2017.

Date	General Journal	Debit	Credit
Dec 31, 2017