Problem 10-3A Straight-Line: Amortization of bond premium LO P1, P3 Hillside issues $1,400,000 of 5%, 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 $1,713,594. Required: 1. Prepare the January 1, 2015, journal entry to record the bonds' issuance. View transaction list Journal entry worksheet > 1 Record the issue of bonds with a par value of $1,400,000 cash on January 1, 2015 at an issue price of $1,713,594. Note: Enter debits before credits. Credit Date General Journal Debit Jan 01, 2015 Record entry Clear entry View general journal 2(a) For each semiannual period, complete the table below to calculate the cash payment. Semiannual cash interest payment Par (maturity) value Annual Rate Year 2(b) For each semiannual period, complete the table below to calculate the straight-line premium amortization. (Round "Unamortized Premium" to whole dollar and use the rounded value for part 4& 5. Par (maturity value) Semiannual periods Premium on Bonds Straight-line premium amortization Bond price Payable = 2(c) For each semiannual period, complete the table below to calculate the bond interest expense Semiannual cash Premium amortization Bond interest expense payment 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 0 4. Prepare the first two years of an amortization table using the straight-line method Carrying Value Semiannual Period- Unamortized Premium End 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 2 Record the first interest payment on June 30, 2015 Note: Enter debits before credits. Debit General Journal Credit Date Jun 30, 2015 Record entry Clear entry View general journal