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Bond Premium, Entries for Bonds Pavable Transactions 12%, receving cash of $6,462,212. Interest on the...

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Accounting

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Bond Premium, Entries for Bonds Pavable Transactions 12%, receving cash of $6,462,212. Interest on the bands is puyable semiannualy on December 31 and June 30 , The fiscal year of the company is the calknds year. Required: For al journal entries with a compound transaction, if an amount box does not require an entry, leave it blank 1. Journalize the entry to record the amount of cash proceeds from the bsuance of the bonds on July 1 , Year 1 . 2. Journalize the entries to record the following: a. The first semiannoal interest payment on December 31, Year 1, and the amortisation of the bond premium, using the straight-ine method. Round to the fiearest doilar. b. The interest payment on sune 30, Year 2 , and the amortization of the bond premium, using the straight-ine method. Round to the neareat dlas, 3. Determine the total interest expense for Yoar 1. Round to the nearest Gollar: 4. Will the bond proceeds always be grouter than the foce amount of the bonds when the contract nate is greater than the markat rate of intereis? dut to rounding differences

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