The fiscal year ends December 31 for Lake Hamilton Development. To provide funding for its Moonlight Bay project, LHD issued 9% bonds with a face amount of $550,000 on November 1, 2016. The bonds sold for $502,815, a price to yield the market rate of 10%. 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? The answer I got was $8,380.

2.	What amount(s) related to the bonds will LHD report in its balance sheet at December 31, 2016?
	Bonds Payable? Interest Expense? The answer I got was $8,250.

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? I figured out two answers but I can't seem to figure out the other four. I'm not sure what I'm doing wrong. Please help and explain. Thank you!