Problem 10-3A Straight-Line: Amortization of bond premium LO P1, P3 Hillside issues $1,900,000 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 $2,325,594. 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 premium 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. Req 1 Req 2A to 20 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 $1,900,000 cash on January 1, 2017 at an issue price of $2,325,594. Note: Enter debits before credits. General Journal Debit Credit Date Jan 01, 2017 Record entry Clear entry View general journal Req 1 Req 2A to 20 Req 3 Req 4 Req 5 For each semiannual period, complete the table below to calculate the cash payment, straight-line premium amortization and bond interest expense. (Round "Unamortized Premium" to whole dollar and use the rounded value for part 4 & 5.) Par (maturity) value Annual Rate Year Semiannual cash interest payment Bond price Par (maturity value) Premium on Bonds Payable Semiannual periods Straight-line premium amortization Semiannual cash payment Premium amortization Bond interest expense Complete this question by entering your answers in the tabs below. Req 1 Req 2A to 20 Req 3 Req 4 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 0 Complete this question by entering your answers in the tabs below. TUULUULUULUUUUUUUUU Reg 1 Req 2A to 20 Req 3 Req 4 Req 5 Prepare the first two years of an amortization table using the straight-line method Semiannual Period- End Unamortized Premium Carrying Value 01/01/2017 06/30/2017 12/31/2017 06/30/2018 12/31/2018 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 Journal entry worksheet
