! Required information Problem 10-4A (Algo) Straight-Line: Amortization of bond discount LO P2 [The following information applies to the questions displayed below.] Legacy issues $740,000 of 7.5%, four-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $680,186 when the market rate is 10%. Problem 10-4A (Algo) Part 1 Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. View transaction list Journal entry worksheet 1 Record the issue of bonds with a par value of $740,000 on January 1, 2021 at an issue price of $680,186. Note: Enter debits before credits. Date January 01 General Journal Debit Credit Record entry Clear entry View general journal 2. Determine the total bond interest expense to be recognized over the bonds' life. Total bond interest expense over life of bonds: Amount repaid: Total repaid payments of Par value at maturity Less amount borrowed Total bond interest expense Problem 10-4A (Algo) Part 3 3. Prepare a straight-line amortization table for the bonds' first two years. Note: Round your intermediate and final answers to the nearest whole dollar. Semiannual Period-End 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 Unamortized Carrying Value Discount 4. Prepare the journal entries to record the first two interest payments. View transaction list Journal entry worksheet 1 2 Record the interest payment and amortization on June 30. Note: Enter debits before credits. Date June 30 General Journal Debit Credit View general journal Record entry Clear entry 4. Prepare the journal entries to record the first two interest payments. View transaction list Journal entry worksheet 1 2 Record the interest payment and amortization on December 31. Note: Enter debits before credits. Date December 31 General Journal Debit Credit Record entry Clear entry View general journal