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Legacy issues $720,000 of 6.5%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at
Legacy issues $720,000 of 6.5%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $683,649 when the market rate is 8%. Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. View transaction list Journal entry worksheet Record the issue of bonds with a par value of $720,000 on January 1, 2019 at an issue price of $683,649. Note: Enter debits before credits. General Journal Debit Credit Date January 01 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 3. Prepare a straight-line amortization table for the bonds' first two years. Semiannual Period- Unamortized End Discount Carrying Value 01/01/2019 06/30/2019 12/31/2019 06/30/2020 12/31/2020 4. Prepare the journal entries to record the first two interest payments. View transaction list Journal entry worksheet
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