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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

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.

Determine the total bond interest expense to be recognized over the bonds' life.

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

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

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