The fiscal year ends December 31 for Lake Hamilton Development. To provide funding for its Moonlight Bay project, LHD issued 5% bonds with a face amount of $680,000 on November 1, 2016. The bonds sold for $601,412, a price to yield the market rate of 6%. The bonds mature October 31, 2036 (20 years). Interest is paid semiannually on April 30 and October 31.

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 Payable: ___________