A company issues $4,000,000 of 6%, 15-year bonds dated January1, 201, that pay interest...

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Accounting

A company issues $4,000,000 of 6%, 15-year bonds dated January1, 201, that pay interest semiannually on June 30 and December 31.The bonds are issued at a price of $3,456,448.
1. Prepare the January 1, 2017, journal entry to record thebonds' issuance.
2. For each semiannual period, compute the (a) cash payment, (b)the straight line amortization, and (c) bond interest expense.
3. Determine the total bond interest expense to be recognizedover the bonds life.
4. Prepare the first two years of an amortization table usingthe straightline method.
5. Prepare the journal entries to record the first two interestpayments.

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1 Prepare the January 1 2017 journal entry to record the bonds issuance Date General Journal Debit Credit Jan 1 2015 Cash 3456448 Discount on bonds payable 543552 Bonds payable 4000000 2a For each semiannual period complete the table below to calculate the cash payment Par maturity value Annual Rate Year Semiannual cash See Answer

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In: AccountingA company issues $4,000,000 of 6%, 15-year bonds dated January1, 201, that pay interest semiannually...A company issues $4,000,000 of 6%, 15-year bonds dated January1, 201, that pay interest semiannually on June 30 and December 31.The bonds are issued at a price of $3,456,448.1. Prepare the January 1, 2017, journal entry to record thebonds' issuance.2. For each semiannual period, compute the (a) cash payment, (b)the straight line amortization, and (c) bond interest expense.3. Determine the total bond interest expense to be recognizedover the bonds life.4. Prepare the first two years of an amortization table usingthe straightline method.5. Prepare the journal entries to record the first two interestpayments.