semiannually on December $31$ and June $30.$ The fiscal year of the company is the calendar year.

Required:

For all joumal entries, If an amount box does not require an entry, leave it blank.

Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July $1,20$Y$1.$

$20Y1$ July $1$ Cash

Journatize the entries to record the following:

a$.$ The first semiannual interest payment on December $31,20$Y$1,$ and the amortization of the bond premium, using the straight$-$line method. Round to the nearest dollar.

$20Y1$ Dec. $31\frac{\text{I}\text{n}\text{t}\text{e}\text{r}\text{e}\text{s}\text{t}\text{E}\text{x}\text{p}\text{e}\text{n}\text{s}\text{e}}{\text{D}\text{i}\text{s}\text{c}\text{o}\text{u}\text{n}\text{t}on\text{B}\text{o}\text{n}\text{d}\text{s}\text{P}\text{a}\text{y}\text{a}\text{b}\text{l}\text{e}}$

b$.$ The interest payment on June $30,20Y2,$ and the amortization of the bond premium, using the straight$-$line method. Round to the nearest dollar.

$2012$ June $30$

Determine the total interest expense for $20$Y$1.$ Round to the nearest dollar.

Will the bon$]$ proceeds always be greater than the face amount of the bonds when the contract rate is greater than the market rate of interest? Your total may vary slightly from the price given due to rounding differences.

Present value of the face amount

Present value of the semi$-$annual

Interest payments

Proceeds of bond issue

All work saved.