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Exercise 9-70 (Algorithmic) Interest Payments and Interest Expense for Bonds (Straight Line) Klamath Manufacturing sold...

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Exercise 9-70 (Algorithmic) Interest Payments and Interest Expense for Bonds (Straight Line) Klamath Manufacturing sold 20-year bonds with a total face amount of 5433,000 and a stated rate of 7.5%. The bonds sold for $457,000 on January 1, 2020, and pay interest semiannually on June 30 and December 31 Required: 1. Prepare the entry to recognize the sale of the bonds. 2020 Jan. 1 (Record issuance bonds at premium.) 2. Determine the amount of the semiannual cash interest payment required by the bonds. Round your answer to the nearest whole dollar, if required. 3. Prepare the journal entry made by Klamath at June 30, 2020, to recognize the interest expense and an interest payment. Round your answers to the nearest whole dollar, if required. 2020 June 30 (Record interest expense.) 4. Determine the amount of interest expense for 2020. 5. Conceptual Connection: If Klamath issued bonds with a variable interest rate, would you expect the market rate of interest to increase, decrease, or stay the same

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