QS 10-4 Journalizing bond issuance LO P1 Prepare the journal entry for the issuance of these bonds. Assume the bonds are issued for cash on January 1, 2017 Garcia Company issues 11.00%, 15-year bonds with a par value of $440,000 and semiannual interest payments. On the issue date, annual market rate for these bonds is 9.00%, which implies a selling price of 114. View transaction list Journal entry worksheet Record the issue of bonds with a par value of $440,000. Note: Enter debits before credits Credit Debit 506. 160 Date Jan 01, 2017 444.000 General Journal Cash Premium on bonds payable Bonds payable Enviro Company issues 8%, 10-year bonds with a par value of $170,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10%, which implies a selling price of 87 12. The straight-line method is used to allocate interest expense. 1. Using the implied selling price of 87 %, what are the issuer's cash proceeds from Issuance of these bonds Cash proceeds 2. What total amount of bond interest expense will be recognized over the life of these bonds? Total Bond Interest Expense Over Life of Bonds: Amount repaid payments of Par value at maturity Total repayments Less amount borrowed (from part 1) Total bond interest expense 2. What total amount of bond interest expense will be recognized over the life of these bonds Total Bond Interest Expense Over Life of Bonds: Amount repaid: payments of Par value at maturity Total repayments Less amount borrowed (from part 1) Total bond interest expense 3. What is the amount of bond interest expense recorded on the first interest payment date? Bond interest expense