Bond discount, entries for bonds pas

semiannually on December $31$ and June $30.$ The fiscal year of the company is the calendar year.

Required:

For all journal entries, if an amount box does not require an entry, leave it blank.

Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July $1,20Y1.$

$20$ Y July $1$ Cash $$

Discount on Bonds Payable $$

Bonds Payable

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Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account.

Journalize the entries to record the following:

a$.$ The first semiannual interest payment on December $31,20$Y$1,$ and the amortization of the bond discount, using the straight$-$line method. Round to the nearest dollar.

b$.$ The interest payment on June $30,20Y2,$ and the amortization of the bond discount, using the straight$-$line method. Round to the nearest dollar.

$20$Y$2$ June $30$

Determine the total interest expense for $20$Y$1.$ Round to the nearest dollar.

$$

Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market raterest

dollar. Your total may vary slightly from the price given due to rounding differences.

Present value of the face amount

Present value of the semiannual interest payments

Proceeds of bond issue