Problem 10-2A Straight-Line: Amortization of bond discount LO P1, P2 Hillside issues $1,200,000 of 8%, 15-year bonds dated January 1, 2015, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,036,935. Required: 1. Prepare the January 1, 2015, journal entry to record the bonds' issuance. View transaction list Journal entry worksheet Record the issue of bonds with a par value of $1,200,000 cash on January 1, 2015 at an issue price of $1,036,935. Note: Enter debits before credits. Credit Date Jan 01, 2015 General Journal Cash Discount on bonds payable Bonds payable Debit 1,036,935 163,0655 1,200,000 Record entry Clear entry View general journal 2(a) For each semiannual period, complete the table below to calculate the cash payment. Par (maturity) value Annual Rate Year Semiannual cash interest payment 2(b)For each semiannual period, complete the table below to calculate the straight-line discount amortization. Par (maturity) value Bonds price Discount on Bonds Payable Semiannual periods Straight-line discount amortization 2(c) For each semiannual period, complete the table below to calculate the bond interest expense. Semiannual cash payment Discount amortization Bond interest expense 3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds life. Total bond interest expense over life of bonds: Amount repaid: payments of Par value at maturity Total repaid Less amount borrowed Total bond interest expense 4. Prepare the first two years of an amortization table using the straight-line method. Carrying Value Semiannual Period- Unamortized End Discount 01/01/2015 06/30/2015 12/31/2015 | 06/30/2016 12/31/2016 5 Prepare the journal entries to record the first two interest payments. View transaction list Journal entry worksheet Record the first interest payment on June 30, 2015. Note: Enter debits before credits. General Journal Debit Credit Date Jun 30, 2015 Record entry Clear entry View general journal