Straight -line amortization of bond premium or discount Four Seasons issues $2,000,000 of 8 %, 4 -year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $2,030,000.

Required

1. Prepare the January 1, 2017, journal entry to record the bonds issuance.

2. For each semiannual period, compute ( a ) the cash payment,

(b) the straight-line premium or discount amortization,

(c)the bond interest expense( d). Unamortized premium or discount, and bond carrying value.

3. Determine the total bond interest expense to be recognized over the bonds life.

4. Prepare a bond amortization table using the straight -line method.

5.Prepare the journal entries to rec ord all the interest

payments.

6. Record the journal entry to record the payback of

the bond at maturity