Problem 10-3A Straight Line: Amortization of bond premium P1 P3 Refer to the bond details in Problem 10-2A, except assume that the bonds are issued at a price of $4,895,980 Required 1. Prepare the January 1,2013, journal entry to record the bonds' issuance. 2. For each semiannual period, compute (a) the cash payment, (b) the straight-line premium amortiza- tion, and (c) the bond interest expense. 3. Determine the total bond interest expense to be recognized over the bonds' life. 4. Prepare the first two years of an amortization table like Exhibit 10.7 using the straight-line method. 5. Prepare the journal entries to record the first two interest payments Check (3) $2,704,020 4) 12/31/2014 carrying value, $4,776,516 Problem 10-3A Straight Line: Amortization of bond premium P1 P3 Refer to the bond details in Problem 10-2A, except assume that the bonds are issued at a price of $4,895,980 Required 1. Prepare the January 1,2013, journal entry to record the bonds' issuance. 2. For each semiannual period, compute (a) the cash payment, (b) the straight-line premium amortiza- tion, and (c) the bond interest expense. 3. Determine the total bond interest expense to be recognized over the bonds' life. 4. Prepare the first two years of an amortization table like Exhibit 10.7 using the straight-line method. 5. Prepare the journal entries to record the first two interest payments Check (3) $2,704,020 4) 12/31/2014 carrying value, $4,776,516