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Description Spring Company issues $725,000 of 4%, four- year bonds dated January 1, 2015, that pay interest semiannually on June 30 and December 31. The market rate is 6% at the issue date. Bonds are sold a 94% Break Company issues $900,000 of 10%, four- year bonds dated January 1, 2015, that pay interest semiannually on June 30 and December 31. The market rate is 6% at the issue date. Bonds are sold a 114% Required for EACH company 1. Prepare the January 1, 2015, journal entry to record the bonds' issuance. 2. Determine the total bond interest expense to be recognized over the bonds' life. 3. Prepare a straight-line amortization table for the bonds' first two years. 4. Prepare the journal entries to record the first two interest payments. ( 12:35 7 - 5 & 8. Part 1 Part 2 7 payments of Par value at maturity Total repaid Less amount borrowed Total band interest expense 15 Part 3 Straight-line amortization table Semiannual Unamortized Interest Period End Carrying Value 30 21 Part 2015 June 30 20 31 11 2015 Dec. 31 1 21 IIII SPRING CO. BREAK CO. 12:35 7 . ( 5 + .. Part 1 Part 2 payments of Pw value maturity Totalread Les amount brewed Total honderste pense Part 3 Straight line amortization table Semiannual Unamorad interest Period End Carrying 20 23 Pard 2015 June 30 2015 Dec. 31 SPRING CO. BREAK CO