On January 1, 2017, Lachte Corporation issued $1,800,000 face value, 5%, 10-year bonds at $1,667,518. This price resulted in an effective-interest rate of 6% on the bonds. Lachte uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest January 1 (a) Prepare the journal entry to record the issuance of the bonds on January 1, 2017 1,667,518 132,482 Jan 1 Cash Discount on Bonds Bonds Payable 1,800,000 (b) Prepare an amortization table through December 31, 2019 (three interest periods) for this bond issue carrying value of the bonds(beginning)* effective interest rate Bond interest expense Bond interest paid face value of bonds contractual interest rate Amortization amount bond interest expense - bond interest paid Unamortized Interest Interest to be Interest to be recorded Bond Discount paid period amortization discount carrying value 10,051.08 10,654.145 11,293.99 100,051.08 100,654.145 122,430.92 111,776.77 10,482.78 1 90,000 90,000 1,677,569.08 1,688,223.23 2 3 90.000 101,293.994 1,789,517.22 (c) Prepare the journal entry to record the accrual of interest and the amortization of the discount on December 31, 2017 Dec 31 Interest Expense 100,051.08 Discount on Bonds Payable Interest Payable 10,051.08 90,000 (d) Prepare the journal entry to record the payment of interest on January 1, 2018 Jan 1 Interest Expense 181,064.15 Discount on Bonds Payable Interest Payable 10,654.15 180,000 (e) Prepare the journal entry to record the accrual of interest and the amortization of the discount on December 31, 2018