On July 1, Year 1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $46,000,000 of 20-year, 10% bonds at a market (effective) inter 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 c year.

1. Journalize the first semiannual interest payment on Dec31 year 1, and the amortization of the bond discount using the interest method.

2. Journalize the interest payment on June 30 year 2 and the amortization of the bond discount using the interest method.

3. Determine the total interest expense for year 1