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Legacy issues $570,000 of 8,5%, four year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $508,050 when the market rate is 12%. Problem 10-4A Part 1 Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. View transaction list Journal entry worksheet Record the issue of bonds with a par value of $570,000 on January 1, 2019 at an issue price of $508,050. Note: Enter debits before credits Debit Credit General Journal Date January 01 Problem 10-4A Straight-Line: Amortization of bond discount LO P2 [The following information applies to the questions displayed below.) Legacy issues $570,000 of 8.5%, four year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $508,050 when the market rate is 12%. Problem 10-4A Part 2 2. Determine the total bond interest expense to be recognized over the bonds' life. 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 Legacy issues $570,000 of 8,5%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $508,050 when the market rate is 12%. Problem 10-4A Part 3 3. Prepare a straight-line amortization table for the bonds' first two years. Carrying Value Semiannual Period- Unamortized End Discount 01/01/2019 06/30/2019 12/31/2019 06/30/2020 12/31/2020 Legacy issues $570,000 of 8,5%, four year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $508,050 when the market rate is 12%. Problem 10-4A Part 4 4. Prepare the journal entries to record the first two interest payments. Journal entry worksheet Record the interest payment and amortization on June 30. Note: Enter debits before credits General Journal Debit Date Credit June 30 Problem 10-4A Part 4 4. Prepare the journal entries to record the first two interest payments. View transaction list Journal entry worksheet

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