Sond Discount, Entries for Bonds Payable Transactions On July 1, Year 1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $46,000,000 of 20-10% bonds at a market (effective) interest rate of 11 receiving cash of $42.309,238 Interest on the bonds is payable semiannually on December 31 and June 30. The focal year of the company is the calender year Required: 1. Journalize the entry to record the amount of cash proceeds from the lesuance of the bonds on July amount box does not require an entry, leave it blank Cash 42.309.23.00 Discount on Bonds Payable 3.490,764.00 Bonds Payable. 46,000,000.00 3 Bonds Payable is always recorded at face value. Any difference in price is reflected in a premium or discount account 2. Journalize the entries to record the following: a. The first semiannual interest payment on December 31, Year 1, and the amortuation of the bond decount, using the straight-line method. If an amount box does not require an entry, leave it blank. Round to the nearest dollar. Interest Expense Discount on Bonds Payable Cash 000 bonds Payable is sways recorded at face value. Any ofference in issue price is reacted in premium or dacount accou Check My Work DII 4 4 400 All work saved PS $ 56 & 5 6 7 8 E R T Y U F G H Previous Save and Ext Submit Assignment for Grading Home And PgDn K P C 131 PM 201 0 Del Backspace eBook Show Me How b. The interest payment on June 30, Year 2, and the amortization of the bond discount, using the straight-line method. If an amount box does not require an entry, leave it blank. Round to the nearest dollar. Interest Expense Discount on Bonds Payable 92,269.00 Cash Check My Wa Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. The straight-line method of amortization provides equal amounts of amortization over the life of the bond. 3. Determine the total interest expense for Year Round to the nearest dollar. 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 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 i Price received for the bonds Feedback Check My Work Remember the sellina orice of a bond is the sum of the present values of the face amount of the bonds due at the maturity date and the periodic interest to be cald on Previous