Problem 10-2A Straight-Line: Amortization of bond discount LO P1, P2 Hillside issues $1,100,000 of 9%, 15-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31 The bonds are issued at a price of $950,524. Required: 1. Prepare the January 1, 2017, journal entry to record the bonds' Issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight-line discount amortization. 2(c) For each semiannual period, complete the table below to calculate the bond interest expense. 3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life, 4. Prepare the first two years of an amortization table using the straight-line method. 5. Prepare the journal entries to record the first two interest payments. Complete this question by entering your answers in the tabs below. Reg 1 Req 2A to 2C Reg 3 Reg 4 Reg 5 Prepare the January 1, 2017, journal entry to record the bonds' issuance. View transaction list View journal entry worksheet No Date General Journal Credit 1 Jan 01, 2017 Cash Debit 950,524 149.476 Discount on bonds payable Bonds payable 1,100,000 Req 2A to 2C > Req 1 Reg 2A to 2C Reg 3 Req 4 Reg 5 For each semiannual period, complete the table below to calculate the cash payment, straight-line discount amortization and bond in Par (maturity) value Year Annual Rate 9 % Semiannual cash interest payment $ 49,500 $ 1,100,000 6/12 = Par (maturity) value $ 1,100,000 Semiannual periods Bonds price $ 950,524 Discount on Bonds Payable $ 149,476 Straight line discount amortization - Semiannual cash payment Bond interest expense amortization Req 1 Req 2A to 20 Req 3 Req 4 Req 5 Complete the below table to calculate the total bond interest expense to be recognized over the t Total bond interest expense over life of bonds: Amount repaid: payments of Par value at maturity Total repaid Less amount borrowed Total bond interest expense Req 1 Req 2A to 20 Req3 Req 4 Reg 5 Prepare the first two years of an amortization table using the straight-line method. Carrying Value Semiannual Period- Unamortized End Discount 01/01/2017 06/30/2017 12/31/2017 06/30/2018 12/31/2018 ( Req3 Req 5 > Record the first interest payment on June 30, 2017. Note: Enter debits before credits. General Journal Debit Credit Date Jun 30, 2017 Record entry Clear entry View general journal Record the second interest payment on December 31, 2017. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, 2017 Record entry Clear entry View general journal