Problem $10-1$B Straight$-$Line: Amortization of bond discount $[$

Romero issues $$3,400,000$ of $10\%,10-$year bonds dated January $1,2020,$ that pay interest semiannually on June $30$ and December $31.$ The bonds are

issued at a price of $$3,010,000.$

Required

Prepare the January $1$ journal entry to record the bonds' issuance.

For each semiannual period, compute $(a)$ the cash payment, $(b)$ the straight$-$line discount amortization, and $($c$)$ the bond interest expense.

Determine the total bond interest expense to be recognized over the bonds' life.

Prepare the first two years of a straight$-$line amortization table like Exhibit $10\mathrm{.}7.$

Prepare the journal entries to record the first two interest payments.

Check $(3)$ $$3,790,000$

$(4)\frac{6}{30}\frac{?}{2021}$ carrying value, $$3,068,500$

Problem $10-2$B Straight$-$Line: Amortization of bond premium $C3$

Required

Prepare the January $1$ journal entry to record the bonds' issuance.

For each semiannual period, compute $($a$)$ the cash payment, $(b)$ the straight$-$line premium amortization, and $($c$)$ the bond interest expense.

Determine the total bond interest expense to be recognized over the bonds' life.

Prepare the first two years of a straight$-$line amortization table like

Prepare the journal entries to record the first two interest payments.

Check $(3)$ $$2,607,068$

$(4)6/30/2021$ carrying value, $$4,073,991$