Problem 10-2A Straight-Line: Amortization of bond discount LO P1, P2 Hillside issues $2,500,000 of 6%, 15-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31 The bonds are issued at a price of $2,160,279 Required 1. Prepare the January 1, 2017, journal entry to record the bonds' issuance 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight-line discount amortization 2(c) For each semiannual period, complete the table below to calculate the bond interest expense 3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life 4. Prepare the first two years of an amortization table using the straight-line methood 5. Prepare the journal entries to record the first two interest payments Complete this question by entering your answers in the tabs below Req 1 Req 2A to 2C Req 3 Req 4 Req 5 Prepare the January 1, 2017, journal entry to record the bonds' issuance View transaction list View journal entry worksheet Date Debit Credit General Journal Jan 01, 2017Cash 2,160,279 339,721 Discount on bonds payable Bonds payable 2,500,000 Req1 Req 2A to 2C Complete this question by entering your answers in the tabs below. Req 5 Req 1 Req 3 Req 4 Req 2A to 2C For each semiannual period, complete the table below to calculate the cash payment, straight-line discount amortization and bond interest expense Semiannual cash interest payment Par (maturity) value Annual Rate Year 6% 75,000 2,500,000 Straight-line discount amortization Discount on Bonds Payable Par (maturity) value Bonds price emiannual periods Bond interest Semiannual cash Discount ent se ex 75,000 11,3241 $ 86,324 Req 4 Req 1 Req 2A to 2C Req 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: Req 5 Amount repaid payments of Par value at maturity Total repaid Less amount borrowed Total bond interest expense 0 0 K Req 2A to 2C Req 4 Req 4Req 5 Req 1 Req 2A to 2C Req 3 Prepare the first two years of an amortization table using the straight-line method Semiannual Period- Unamortized Carrying Value End 01/01/2017 06/30/2017 12/31/2017 06/30/2018 12/31/2018 Discount Req 3 Req5 > Req 1 Req 5 q Req 2A to 2C Req 3 Req 4 Prepare the journal entries to record the first two interest payments. View transaction list Journal entry worksheet 2 Record the first interest payment on June 30, 2017 Note: Enter debits before credits. Date General Journal Debit Credit Jun 30, 2017 View general journal Record entry Clear entry Req 5 Req1Req 2A to 2CReq 3 Req 4 Prepare the journal entries to record the first two interest payments. View transaction list Journal entry worksheet Record the second interest payment on December 31, 2017 Note: Enter debits before credits. General Journal Debit Credit Date Dec 31, 2017 View general journal Record entry Clear entry