Problem 10-4A Straight-Line: Amortization of bond discount LO P2 The following information applies to the questions displayed below.) Legacy issues $570,000 of 8.5%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $508,050 when the market rate is 12% Journal entry worksheet Record the issue of bonds with a par value of $570,000 on January 1, 2019 at an issue price of $508,050. Note: Enter debits before credits. Date General Journal Debit Credit January 01 Record entry Clear entry View general journal ! Required information Problem 10-4A Straight-Line: Amortization of bond discount LO P2 (The following information applies to the questions displayed below) Legacy issues $570,000 of 8.5%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $508,050 when the market rate is 12% Problem 10-4A Part 2 2. Determine 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 expenso ! Required information Problem 10-4A Straight-Line: Amortization of bond discount LO P2 [The following information applies to the questions displayed below) Legacy issues $570,000 of 8.5%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $508,050 when the market rate is 12% Problem 10-4A Part 3 3. Prepare a straight-line amortization table for the bonds' first two years. Carrying Value Semiannual Period: Unamortized End Discount 01/01/2019 06/30/2019 12/31/2019 06/30/2020 12/31/2020 Required information Problem 10-4A Straight-Line: Amortization of bond discount LO P2 (The following information applies to the questions displayed below.) Legacy issues $570,000 of 8.5%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $508,050 when the market rate is 12% Problem 10-4A Part 4 4. Prepare the journal entries to record the first two interest payments. View transaction list Journal entry worksheet >