On July $1,20$Y$1,$ Livingston Corporation, a wholesaler of manufacturing equipment, issued $$46,000,000$ of $20-$year, $10\%$ bonds at a market $($effective$)$ interest rate of $11\%,$ receiving cash of $$42,309,236.$ Interest on the bonds is payable semiannually on December $31$ and June $30.$ The fiscal year of the company is the calendar year.Required:For all journal entries, if an amount box does not require an entry, leave it blank.Journalize the entry to record the amount of cash proceeds from the issuance of the bonds.$20$ Y$1$ July $1◻✓◻✓◻$ Discount on Bonds Payable $,✓◻$$◻$Bonds Payable $◻$$◻$FeedbackCheck My WorkBonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account.$2.$ Journalize the entries to record the following:a$.$ The first semiannual interest payment on December $31,20\mathrm{????}1,$ and the amortization of the bond discount, using the interest method. Round to the nearest dollar. $\mathrm{????},$$\frac{8}{12}$ itemsPreviousNextJournalize the entries to record the following:a$.$ The first semiannual interest payment on December $31,20\mathrm{????}1,$ and the amortization of the bond discount, using the interest method. Round to the nearest dollar.$20$ Y $1$ Dec. $31$ Interest Expense $✓$FeedbackT Check My Work$2$a$.$ Cash received on July $1,20$ Y$1\times$ semiannual market rate $=$ Interest Expense $($debit$).$ Principal $\mathrm{????}$ semiannual contract rate $=$ cash paid $($credit$).$ The premium amortized $($debit$)$ is the difference between the two amounts.b$.$ The interest payment on June $30,20\mathrm{????}2,$ and the amortization of the bond discount, using the interest method. Round to the nearest dollar.$20\mathrm{????}2$ June $30◻$$◻$$◻$$◻$$◻$$◻$$◻$$◻$PreviousNextb$.$ The interest payment on June $30,20\mathrm{????}2,$ and the amortization of the bond discount, using the interest method. Round to the nearest dollar.$20$Y$2$ June $30◻$$◻$$◻$$\mathrm{.}02.$ALGO$\mathrm{.}06$$\mathrm{.}05$$11$$\mathrm{.}04$B$2$B$.$GENERALLEDGER$1\mathrm{.}12.$EXCEL.ALGO$11\mathrm{.}03$$1\mathrm{.}17$FeedbackT Check My Work$3.20\mathrm{????}1$ Interest expense is the amount debited in $2($a$).$  

11.03 b. The interest payment on June 30, 20Y2, and the amortization of the bond discount, using the interest method. Round to the nearest dollar. 11.06 .02.ALGO 20Y2 June 30 .06 05 11 .04B Feedback Check My Work 2b. Cash received (- premium amortized Dec. 31, 20Y1) x semiannual market rate = Interest Expense (debit). Principal x semiannual contract rate = cash paid (credit). The premium amortized (debit) is the difference between the two amounts. 02B.GENERALLEDGER 1.12.EXCEL.ALGO 3. Determine the total interest expense for 20Y1. Round to the nearest dollar. $ X 11.03 1.17 Feedback Check My Work 3. 20Y1 Interest expense is the amount debited in 2(a).