During 2016 and 2017, Agatha Corp. completed the following transactions relating to its bond issue. The corporations fiscal year is the calendar year.

2016

Jan. 1	Issued $230,000 of 10-year, 6 percent bonds for $221,000. The annual cash payment for interest is due on December 31.
Dec. 31	Recognized interest expense, including the straight-line amortization of the discount, and made the cash payment for interest.
Dec. 31	Closed the interest expense account.

2017

Dec. 31	Recognized interest expense, including the straight-line amortization of the discount, and made the cash payment for interest.
Dec. 31	Closed the interest expense account.

b.	Prepare the general journal entries for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
2016

Jan. 1	Issued $230,000 of 10-year, 6 percent bonds for $221,000. The annual cash payment for interest is due on December 31.
Dec. 31	Recognized interest expense, including the straight-line amortization of the discount, and made the cash payment for interest.
Dec. 31	Closed the interest expense account.

2017

Dec. 31		Recognized interest expense, including the straight-line amortization of the discount, and made the cash payment for interest.
Dec. 31		Closed the interest expense account.
c. .	Prepare the liabilities section of the balance sheet at December 31, 2016 and 2017. (Amounts to be deducted should be indicated with minus sign.) 2016 2017 Liabilities Carrying value of bonds payable

d.		Determine the amount of interest expense that will be reported on the income statements for 2016 and 2017.
	Interest expense 2016 2017

e.	Determine the amount of interest that will be paid in cash to the bondholders in 2016 and 2017.

	Interest paid 2016 2017