On July 1, Year 1, Livingston Corporation, a wholesaler of manufacturing equipm

Bond Discount, Entries for Bonds Payable Transactions, Interest Method of Amortizing Bond Discount On July 1, Year 1, Livingston Corporation, a wholesaler of manufacturing equipment, isued $50,000,000 of 20-year, 11 (effective) interest rate of 14%, receiving cash of $40,003,000. Interest fiscal year of the company is the calendar year Required: For all journal entries: For a compound transaction, if an amount box does not require an entry, leave it blank on the bonds is payable semiannually on December 31 and June 30. The 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds Year 1 July 1 2. Journalize the entries to record the following: a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the interest method. (Round to the nearest dollar.) Year 1 Dec. 31 nt mothnd. Round to the nearest dollar.)