Problem 10-2A Straight-Line: Amortization of bond discount LO P1, P2 Hillside issues $2,600,000 of 5%, 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 $2,246,690. 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 method. 5. Prepare the journal entries to record the first two interest payments View transaction list Journal entry worksheet Record the issue of bonds with a par value of $2,600,000 cash on January 1, 2017 at an issue price of $2,246,690. Note: Enter debits before credits. General Journal Debit Credit Jan 01, 2017 Record entry Clear entry View general joumal 1 of 3 3 581 Next Complete this question by entering your answers in the tabs below. Reg 1 Req 2A to 2c Reg 3 For each semiannual period, complete the table below to calculate the cash payment, straight-line discount amortization and bond interest expense. Par (maturity) value Annual Rate Year Semiannual cash interest payment Par (maturity) value Bonds price Discount on Bonds Payable Semiannual periods de Straight line discount amortization Semiannual cash payment Discount amortization Bond interest expense 1 of 3 Next > BIO @ re to search 9 4. Prepare the nurst two years or an amoruzauon tape using the straignt-kine metnoo. 5. Prepare the journal entries to record the first two interest payments. Complete this question by entering your answers in the tabs below. Req1 Reg 2A to ZC Reg 3 Req 4 Reg 5 Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. Total bond interest expense over lite 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. 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 20 Req 3 Real4 Req 5 Prepare the first two years of an amortization table using the straight-line method. Semiannual Period- Unamortized Carrying Value 01/01/2017 06/30/2017 1273 1/2017 06/30/2018 12/31/2018 Req5 > J epulebejumloemes elolu ve SU WO Interest payments. Complete this question by entering your answers in the tabs below. Req1 Req 2A to 20 Reg 3 Reg 4 Reg 5 BOOM Ask Prepare the journal entries to record the first two interest payments. mint View transaction list erences Record the first interest payment on June 30, 2017. Record the second interest payment on December 31, 2017 Credit
