Problem 10-2A Straight-Line: Amortization of bond discount LO P1, P2

Problem 10-2A Straight-Line: Amortization of bond discount LO P1, P2 . Hillside Issues $2,800,000 of 8%, 15-year bonds dated January 1, 2017, that pay interest semlannually on June 30 and December 31 The bonds are issued at a price of $2,419,512. Requirec 1. Prepare the January 1, 2017, Journal entry to record the bonds' Issuance 2a) For each semlannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual perlod, complete the table below to calculate the straight-line discount amortization. 2(C) For each semlannual perlod, 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' lfe 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 2C Req 3 Req 4 Req 5 Prepare the January 1, 2017, journal entry to record the bonds' issuance View transaction list Journal entry worksheet Record the issue of bonds with a par value of $2,800,000 cash on January 1 2017 at an issue price of $2,419,512 Note: Enter debits before credits. Date General Journal Debit Credit Jan 01, 2017 Clear entry Record entry View general jourmal Req 1 Req 2A to 2C Req 1 Req 2A to 2C Req 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 Req 4 Req 5 Semiannual cash interest payment Annual Rate Year Discount on Bonds Payable Straight-line discount amortization Semiannual periods Par (maturity) value Bonds price Discount amortization Semiannual cash payment Bond interest expense K Req 1 Req 3> Req 4 Req 1 Req 2A to 2CReq 3 Req 5 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 Req 4 Req 1Req 2A to 2C Req 3 Req 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, 2017 Note: Enter debits before credits Date General Journal Debit Credit Jun 30, 2017 Record entry Clear entry View general journal K Req 4 Req 5