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Legacy issues $730,000 of 70%, four-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. They are issued at
Legacy issues $730,000 of 70%, four-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. They are issued at $659199 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. Complete this question by entering your answers in the tabs below. Required Required 2Required 3 Required4 Complete the below table to calculate 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
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