PR 14-2B Bond discount, entries for bonds payable transactions On July 1, 2016, Livingston Cor $46,00(),()( cash of S42,309,236. on June . The fiscal year of the OBJ. 2, 3 porato, a wholesaler of manufacturing equipment, issued )() (f 2()-year, 10% lx)nds at a n'arket (effective) interest rate of 11%, receiving merest on the bonds is payable semiannually on December 31 and company is te calendar year Instructions 1. Journalize the entry to record the amount of cash pred om the issuance of the bonds on July 1, 2016 2. Journaize he entries to record the following: a. The first semiannual interest paymen December 31, 2016, and the amortization of the bond discount, using the straight-line method. (Round to the nearest dollar.) b. The interest paymen on June 30, 2017, and the amortization of the bond discount, using the straighle method. (Round to the nearest dollar.) 3. Determine the total interest expense for 2016 4. Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less tan the market rate of interest? 5. (Appendix 1) Compute the price of $42,309,236 received for the bonds by using the present value tables in Appendix A at the end of the text. (Round to the nearest dollar.)