On June 30, 2017, Carla Vista Limited issued $6 million of 20-year, 11% bonds for $6,514,802, which provides a yield of 10%. The company uses the effective interest method to amortize any bond premium or discount. The bonds pay semi-annual interest on June 30 and December 31.

Prepare the journal entries to record the following transactions: (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

1.		The issuance of the bonds on June 30, 2017
2.		The payment of interest and the amortization of the premium on December 31, 2017
3.		The payment of interest and the amortization of the premium on June 30, 2018
4.		The payment of interest and the amortization of the premium on December 31, 2018

NEED FOR :

JUNE 30 2017----- 2 ENTRIES

DEC 31, 2017 ------ 3 ENTRIES

JUNE 30 2018 ----- 3 ENTRIES

DEC 31, 2018 ---- 3 ENTRIES

2- Show the proper statement of financial position presentation for the liability for bonds payable on the December 31, 2017 statement of financial position. (Round answer to 0 decimal places, e.g. 5,275.)

Carla Vista Limited Statement of Financial Position (Partial)

3- What amount of interest expense is reported for 2017?

Interest expense to be reported $_________ What is the total cost of borrowing over the life of the bond? $________________(Round answer to 0 decimal places, e.g. 5,275.) Total cost of borrowing over the life of the bond