! Required information [The following information applies to the questions displayed below.) Hillside issues $2,000,000 of 6%, 15-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $2,447,990. Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight-line premium amortization. 2) For each semiannual period, complete the table below to calculate the bond interest expense. 3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 4. Prepare the first two years of a straight-line amortization table. 5. Prepare the journal entries to record the first two interest payments. Complete this question by entering your answers in the tabs below. Req 1 Reg 2A to 2C Reg 3 Reg 4 Reg 5 Prepare the January 1 journal entry to record the bonds' issuance. Journal entry worksheet 1 Record the issue of bonds with a par value of $2,000,000 on January 1, 2021 at an issue price of $2,447,990. Note: Enter debits before credits. General Journal Debit Credit Date January 01 Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A to 20 Reg 3 Req 4 Reg 5 For each semiannual period, compute (a) the cash payment, (b) the straight-line premium amortization, and (c) the bond interest expense. (Round your final answers to the nearest whole dollar.) Par (maturity) value Annual Rate Year Semiannual cash interest payment 2(a) Bond price Par (maturity value) Premium on Bonds Payable Semiannual periods Straight-line premium amortization 2(b) - Semiannual cash payment Premium amortization Bond interest expense 2(c) Complete this question by entering your answers in the tabs below. Reg 1 Req 2A to 20 Reg 3 Reg 4 Req 5 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 Req 1 Req 2A to 20 Reg 3 Reg 4 Reg 5 Prepare the first two years of a straight-line amortization table. (Round your intermediate and final answers to the nearest whole dollar.) Semiannual Period- Unamortized End Premium 01/01/2021 Carrying Value 06/30/2021 12/31/2021 06/30/2022 12/31/2022 Req 1 Req 2A to 20 Reg 3 Reg 4 Req 5 Prepare the journal entries to record the first two interest payments. (Round your intermediate and final answers to the nearest whole dollar.) Journal entry worksheet Record the first interest payment on June 30. Note: Enter debits before credits. Date General Journal Debit Credit June 30 Record entry Clear entry View general journal Journal entry worksheet Record the second interest payment on December 31. Note: Enter debits before credits. Date General Journal Debit Credit December 31 Record entry Clear entry View general journal
