[The following information applies to the questions displayed below.]

Legacy issues $710,000 of 8.0%, four-year bonds dated January 1, 2015, that pay interest semiannually on June 30 and December 31. They are issued at $621,812 and their market rate is 12% at the issue date.

3. value:

1.17 points Required information

Required:

1.	Prepare the January 1, 2015, journal entry to record the bonds' issuance.

References eBook & Resources WorksheetLearning Objective: 10-P1 Prepare entries to record bond issuance and interest expense.Learning Objective: 10-P3 Compute and record amortization of bond premium using straight-line method.Difficulty: 3 HardLearning Objective: 10-P2 Compute and record amortization of bond discount using straight-line method.Check my work

4. value:

1.17 points Required information

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

References eBook & Resources Expanded tableLearning Objective: 10-P1 Prepare entries to record bond issuance and interest expense.Learning Objective: 10-P3 Compute and record amortization of bond premium using straight-line method.Difficulty: 3 HardLearning Objective: 10-P2 Compute and record amortization of bond discount using straight-line method.Check my work

5. value:

1.17 points Required information

3.	Prepare a straight-line amortization tablefor the bonds' first two years.

References eBook & Resources Expanded tableLearning Objective: 10-P1 Prepare entries to record bond issuance and interest expense.Learning Objective: 10-P3 Compute and record amortization of bond premium using straight-line method.Difficulty: 3 HardLearning Objective: 10-P2 Compute and record amortization of bond discount using straight-line method.Check my work

6. value:

1.17 points Required information

4.	Prepare the journal entries to record the first two interest payments