Problem 14-5A Straight-Line: Amortization of bond premium and discount Lo Pl, P2, P3 The following information applies to the questions displayed below.] Legacy issues $570,000 of 8.5%, four-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. They are issued at $508.050 and their market rate is 12% at the issue date. Problem 14-5A Part 1 Required: 1. 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 $570,000 cash on January 1, 2017 at an issue price of $508,050. Note: Enter debits before credits. General Journal Debit Credit Date Jan 01, 2017 Problem 14-5A 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 expense Problem 14-5A Part 3 3. Prepare a straight-line amortization table for the bonds' first two years. Semiannual Period- Unamortized End Discount 01/01/2017 Carrying Value 06/30/2017 12/31/2017 06/30/2018 12/31/2018