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Straight-Line: Amortization of bond discount P2 Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and
Straight-Line: Amortization of bond discount P2 Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $3,456,448. Required 1. Prepare the January 1 journal entry to record the bonds issuance. 2. For each semiannual period, compute (a ) the cash payment, (b ) the straight-line discount amortization, and (c ) the bond interest expense. 3. Determine the total bond interest expense to be recognized over the bonds life. 4. Prepare the first two years of a straight-line amortization table like Exhibit 10.7. 5. Prepare the journal entries to record the first two interest payments. Check (3) $4,143,552 (4) 12/31/2022 carrying value, $3,528,920
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