Problem 10-18 Straight-Line: Amortization of bond discount P2 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 1. Prepare the January 1 journal entry to record the bonds" issuance. 2. For each semiannual period, compute(a) the cash payment, (b) the straight-line discount amortization, and (c) the bond interest expense. 3. Determine the total bond interest expense to be recognized over the bonds' life. Page 404 4. Prepare the first two years of a straight-line amortization table like Exhibit 10.7. 5. Prepare the journal entries to record the first two interest payments. Check (3) $3.790,000 (4) 6/30/2021 carrying value, $3,068,500 1. Award: 0.50 points What is the debit to cash on January 1? (Do not use dollar signs) 2. Award: 0.50 points On January 1, is the Discount on Bonds Payable a debitor credit? Debit Credit 3. Award: 0.50 points On January 1, what is the dollar amount for the Discount on Bonds Payable? (do not use dollar sign) 4. Award: 0.50 points On January 1, what is the dollar amount for the credit to Bonds Payable? (do not use dollar sign