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Problem 14-2A Allocating bond interest and amortizing a bond discount L04,5 Banjo Education Corp. issued a 4%, $230,000 bond that pays interest semiannually each June

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Problem 14-2A Allocating bond interest and amortizing a bond discount L04,5 Banjo Education Corp. issued a 4%, $230,000 bond that pays interest semiannually each June 30 and December 31. The date of issuance was January 1, 2020. The bonds mature after four years. The market interest rate was 6%. Banjo Education Corp.'s year-end is December 31. Use TABLE 14A1 and TABLE 144 2. (For all the requirements, Use appropriate factor(s) from the tables provided.) Required: Preparation Component 1. Calculate the issue price of the bond. (Round the final answer to the nearest whole dollar.) Issue price of the bond 2. Prepare a general journal entry to record the issuance of the bonds. (Do not round intermediate calculation final answers to the nearest whole dollar.) View transaction list Journal entry worksheet > Record the sale of bonds on original issue date. Note: Enter debits before credits Date General Journal Debit Credit January 01, 2020 3. Determine the total bond interest expense that will be recognized over the life of these bonds. (Do not round intermediate calculations. Round your answer to the nearest whole dollar.) Total bond interest expense 4. Prepare the first two years of an amortization table based on the effective interest method. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar. Enter all the amounts as positive values.) Period Ending Cash Interest Paid Period Interest Expense Discount Amort. Unamortized Discount Carrying Value Jan. 1/20 June 30/20 Dec. 31/20 June 30/21 Dec. 31/21 3 Journal entry worksheet 1 2 30 points Record the six months Interest and discount amortization References Note: Enter debits before credits Date June 30, 2020 General Journal Dehit Credit 1 20 Record the six months' interest and discount amortization. Note: Enter debits before credits. General Journal Date December 31, 2020 Debit Credit Record entry Clear entry View general Journal

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