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[The following information applies to the questions displayed below.] Ike issues $240,000 of 11%, three-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $246,087 when the market rate is 10%.

Required: 1. Prepare the January 1 journal entry to record the bonds' issuance.

Journal entry worksheet

Record the issue of bonds with a par value of $240,000 on January 1, 2021 at an issue price of $246,087.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
January 01

. 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			0
Less amount borrowed
Total bond interest expense			$0

3. Prepare an effective interest amortization table for the bonds' first two years. (Round your intermediate and final answers to the nearest whole dollar.)

Semiannual Interest Period-End	Cash Interest Paid	Bond Interest Expense	Premium Amortization	Unamortized Premium	Carrying Value
01/01/2021
06/30/2021
12/31/2021
06/30/2022
12/31/2022