On December 31, 2016, Grumpy Corporation issued $950,000, 8%, 15-year bonds for $803,964 cash when the market rate of interest was 10%. The bonds pay interest semi-annually each June 30 and December 31.

A) Give the general journal entries on (1) December 31, 2016-the issue date of the bonds and (2) June 30, 2017-the first interest payment date.

B)What amount of interest expense will be reported on the 2017 income statement?

C)What amount of interest expense will be reported on the 2018 income statement?

D)What total amount of interest expense will be recorded over the lifetime of the bonds?

E)Indicate the presentation of the bond payable on the December 31, 2018 balance sheet.