Required Information Problem 14-10AB Effective Interest: Amortization of bond; retiring bonds LO P1, P4, P5, P6 The following information applies to the questions displayed below.] Ike issues $250,000 of 13%, three-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. They are issued at $256.156. Their market rate is 12% at the issue date. Problem 14-10AB 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 $250,000 cash on January 1, 2017 at an issue price of $256,156. Note: Enter debits before credits. General Journal Debit Credit Date Jan 01, 2017 Problem 14-10AB Part 2 2. Complete the below table to calculate 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 14-10AB Part 3 3. Prepare an effective interest amortization table for the bonds' first two years. Cash Interest Bond Interest Paid Expense Premium Amortization Unamortized Premium Carrying Value Semiannual Interest Period-End 01/01/2017 06/30/2017 12/31/2017 06/30/2018 12/31/2018 Problem 14-10AB Part 4 4. Prepare the journal entries to record the first two interest payments. View transaction list Journal entry worksheet Record the first interest payment on June 30, 2017. Note: Enter debits before credits. General Journal Debit Credit Date Jun 30, 2017 Problem 14-10AB Part 5 5. Prepare the journal entry to record the bonds' retirement on January 1, 2019, at 98. View transaction list Journal entry worksheet Record the retirement of the bonds on January 1, 2019 at 98. Note: Enter debits before credits. General Journal Debit Credit Date Jan 01, 2019