On July 1, 20Y1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $40,000,000 of 20-year, 11% bonds at a market (effective) interest rate of 14%, receiving cash of $32,002,400. 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.

1. The interest payment on June 30, 20Y2, and the amortization of the bond discount, using the interest method. Round to the nearest dollar.

20Y2 June 30	Interest Expense	fill in the blank ac9592fdb02ffe6_2	fill in the blank ac9592fdb02ffe6_3
	Discount on Bonds Payable	fill in the blank ac9592fdb02ffe6_5	fill in the blank ac9592fdb02ffe6_6
	Cash	fill in the blank ac9592fdb02ffe6_8	fill in the blank ac9592fdb02ffe6_9

2. Rodgers Corporation produces and sells football equipment. On July 1, 20Y1, Rodgers issued $81,000,000 of 20-year, 14% bonds at a market (effective) interest rate of 12%, receiving cash of $93,167,820. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.

Journalize the entries to record the following:

a. The first semiannual interest payment on December 31, 20Y1, and the amortization of the bond premium, using the interest method. Round to the nearest dollar.

20Y1 Dec. 31	Interest Expense	fill in the blank 04ea6b0b9f9301e_2	fill in the blank 04ea6b0b9f9301e_3
	Premium on Bonds Payable	fill in the blank 04ea6b0b9f9301e_5	fill in the blank 04ea6b0b9f9301e_6
	Cash	fill in the blank 04ea6b0b9f9301e_8	fill in the blank 04ea6b0b9f9301e_9

b. The interest payment on June 30, 20Y2, and the amortization of the bond premium, using the interest method. Round to the nearest dollar.

20Y2 June 30	Interest Expense	fill in the blank 0609d2ff603af89_2	fill in the blank 0609d2ff603af89_3
	Premium on Bonds Payable	fill in the blank 0609d2ff603af89_5	fill in the blank 0609d2ff603af89_6
	Cash	fill in the blank 0609d2ff603af89_8	fill in the blank 0609d2ff603af89_9

c. Determine the total interest expense for 20Y1. Round to the nearest dollar.

__________?