On January 1, Year 1, Twain Corporation sold $510,000 of its own 7 percent, 10-year bonds. Interest is payable annually on December 31. The bonds were sold to yield an effective interest rate of 8 percent. Twain uses the effective interest rate method. The bonds sold for $475,779. Required a. Prepare the journal entry for the issuance of the bonds. b. Prepare the journal entry for the amortization of the bond discount and the payment of the interest at December 31, Year 1. (Assume effective interest amortization.) c. Prepare the journal entry for the amortization of the bond discount and the payment of interest on December 31, Year 1. (Assume straight-line amortization.) d. Calculate the amount of interest expense for Year 2. (Assume effective interest amortization.) e. Calculate the amount of interest expense for Year 2. (Assume straight-line amortization.)

Required A Required B Required C Required D Required E Prepare the journal entry for the issuance of the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest dollar amount.) View transaction list Journal entry worksheet Record the entry for the issuance of the bonds. Note: Enter debits before credits. Required A Required B Required C Required D Required E Prepare the journal entry for the amortization of the bond discount and the payment of the interest at December 31, Year 1. (Assume effective interest amortization.) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate calculations and final answers to the nearest dollar amount.) View transaction list Journal entry worksheet Record the entry for the amortization of the bond discount and the payment of the interest at December 31, Year 1. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31Required A Required B Required C Required D Required E Prepare the journal entry for the amortization of the bond discount and the payment of interest on December 31, Year 1. (Assume straight-line amortization.) (If no entry is required for a transaction/event, select "No journal entry required" in the rst account eld. Round your intermediate calculations and final answers to the nearest dollar amount.) View transaction list Journal entry worksheet Record the entry for the amortization of the bond discount and the payment of interest on December 31, Year 1. Note: Enter debits before credits Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Calculate the amount of interest expense for Year 2. (Assume straight-line amortization.) (Round your intermediate calculations and nal answers to the nearest dollar amount.)