1. On January 1, 2021, ABC Company issued 10-year, 10% bonds with a maturity value of $3,400,000. The bond issue price was $3,010,000. ABC is contractually obligated to pay interest on June 30 and December 31 each year over the life of the bond. The companys accounting policy indicates that bond premiums and bond discounts are amortized using the straight-line method.

Using the attached T-account template (or prepare an equation presentation using a spreadsheet format), prepare the entries to recognize the following transactions

1/1/21 Issuance of the bond

6/30/21 Cash payment of interest, the bond interest expense, and the amortization of the bond discount.

12/31/21 Cash payment of interest, the bond interest expense, and the amortization of the bond discount

What is the balance in the Bond Payable account at 12/31/21? ____________________

What is the balance in the Bond Discount account at 12/31/21? ___________________

What is book value (carrying value) of the Bond Payable at 12/31/21? ____________________