Sond discount, entries for bonds payable transactions On July 1, 201, Livingston Corporation, a wholesaler of manufacturing soupment, issued $4,000,000 of 20-year, 10% bends at a market (effective) interest rate of 11%, receiving cash of $42,309,236, Interest on the bonds payable manually on December 31 and June 30. The flacal year of the company is the calendar year Required For all journal entries, if an amount box does not require an entry, leave it blank 1. 70umatize the entry to recent the amount of cash proceeds from the issuance of the bonds on July 1, 2011 Date Account 2011 July 1 Debit Credit 3. Journale the entries to record the following a. The first semiannual interest payment on December 31, 2011, and the amortization of the bend discount, using the straight-the method. Round to the nearest dollar Date 2011 Dec 31 Account Debil 000 Credit 000 88 b. The interest payment on June 30, 2012, and the amortization of the bond discount, using the straight-line method. Round to the nearest dollar. Date Account Debit Credit 2012 June 30 3. Determine the total interest expense for 2011. 4. Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest? 5. Compute the price of $42,309,236 received for the bonds by using the Present value at compound interest, and Present value of an annuity. Round your PV values to 5 decimal places and the final answers to the nearest dollar. Your total may vary slightly from the price given due to rounding differences Present value of the face amount Present value of the semiannual interest payments Proceeds of bond issue