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Problem 10-8AB Effective Interest: Amortization of bond discount LO P5 Legacy issues $640,000 of 8.5%, four-year bonds dated January 1, 2019, that pay interest semiannually

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Problem 10-8AB Effective Interest: Amortization of bond discount LO P5 Legacy issues $640,000 of 8.5%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $570,443 when the market rate is 12%. Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 2. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 3. Prepare an effective interest amortization table for the bonds' first two years. 4. Prepare the journal entries to record the first two interest payments. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare the journal entries to record the first two interest payments. No Date General Journal Debit Credit 1 June 30 Bond interest expense 35,895 X Discount on bonds payable 8,695 X Cash 27,200 2 December 31 Bond interest expense 35,895 X Discount on bonds payable 8,695 X Cash 27,200

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