On January 1, 20XO, Boise District issued $10.5 million of 3-year, 8% debentures. Interest is paid semi-annually. The market interest rate at issuance was 12%. (Click the icon to view the Present Value of $1 table.) (Click the icon to view the Future Value of $1 table.) (Click the icon to view the Present Value of Ordinary Annuity of $1 table.) Read the requirements Requirement 1. Compute the proceeds from issuing the debentures. (Enter amounts in dollars instead of in millions. Use factor amounts rounded to four decimal places. Round your answers to the nearest whole dollar.) Interest payments 2065276 7402086 Maturity payment 9467362 Proceeds Requirement 2. By using the balance sheet equation format, prepare an analysis of this bond transaction. Show entries for the issuer concerning (a) issuance, (b) first semiannual interest payment, and (c) payment of maturity value. (Abbreviation used: RE = Retained Earnings. Round your answers to the nearest whole dollar. Use parentheses or a minus sign to show a decrease in an accounting equation component and leave any unused cells blank.) Assets Liabilities + Stockholders' Equity Discount Premium RE: Bonds on Bonds Bonds Interest Payable Expense Cash 9467362 Payable 10500000 Payable 1032638 (a) 0 0 (b) (420000) = 0 (148042) 568042 (C) (10500000) = (10500000) 0 0 Requirement 3. Show the corresponding journal entries for (a), (b), and (c) in requirement 2 Begin by preparing the journal entry for (a) issuance. (Record debits first, then credits. Explanations are not required. Enter amounts in dollars instead of in millions.) Accounts Debit Credit (a) 9467362 Cash Bonds payable Discount on bonds payable 1032638 10500000 Next prepare the journal entry for (b) the first semiannual interest payment. Accounts Debit Credit (b) Interest expense 568042 Cash 420000 Discount on bonds payable 148042 Now prepare the journal entry for (c) the payment of maturity value. Accounts Debit Credit (c) Bonds payable 10500000 Cash 10500000 Requirement 4. Show how the bond-related accounts would appear on the balance sheets as of January 1, 20X0 and July 1, 20X0. Assume Boise District has already recorded the semiannual interest payment and amortization due on the balance sheet dates January 1, 20X0 July 1, 20x0 Bonds payable Interest expense V Net liability