Southwest Corporation issued bonds with the following details: Face value: $600,000 Interest: 9 percent per year payable each December 31 Terms: Bonds dated January 1, 2015, due five years from that date The annual accounting period ends December 31. The bonds were issued at 104 on January 1, 2015 when the market interest rate was 8 percent. Assume the company uses effective-interest amortization and adjusts for any rounding errors when recording interest expense in the final year. Required: 1. Compute the cash received from the bond issuance in dollars. TIP: The issue price typically is quoted at a percentage of face value. Bond Issue Price 2. Prepare the journal entry to record the issuance of the bonds. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 Record the issuance of bonds with a face value of $600,000 at 104 Note: Enter debits before credits. Date General Journal Debit Credit January 01, 2015 Record entry Clear entry View general journal 3. Prepare the journal entries to record the payment of interest on December 31, 2015 and 2016. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest whole dollar.) View transaction list Journal entry worksheet 1 2 Record the interest payment on December 31, 2015 Note: Enter debits before credits. Credit Date General Journal Debit December 31, 2015 Clear entry Record entry View general journal 4-a. How much interest expense would be reported on the income statements for 2015 and 2016? (Round your answers to the nearest whole dollar.) 2016 2015 Interest Expense 4-b. Compute the bond value which should be reported on the balance sheets at December 31, 2015 and 2016. (Round your intermediate calculations and final answers to the nearest whole dollar.) SOUTHWEST CORPORATION Balance Sheet (partial) 2015 2016 Carrying Value