The fiscal year ends December 31 for Lake Hamilton Development. To provide funding for its Moonlight Bay project, LHD issued 7% bonds with a face amount of $630,000 on November 1, 2016. The bonds sold for $567,653, a price to yield the market rate of 8%. The bonds mature October 31, 2036 (20 years). Interest is paid semiannually on April 30 and October 31.

Required:

1.	What amount of interest expense related to the bonds will LHD report in its income statement for the year ending December 31, 2016?
	INTEREST EXPENSE=?

2.	What amount(s) related to the bonds will LHD report in its balance sheet at December 31, 2016?
	BONDS PAYABLE=? INTEREST PAYABLE=?

3.	What amount of interest expense related to the bonds will LHD report in its income statement for the year ending December 31, 2017? INTEREST EXPENSE=?

4.	What amount(s) related to the bonds will LHD report in its balance sheet at December 31, 2017?
	BONDS PAYABLE=? INTEREST EXPENSE=?