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  3. legacy issues $325,000 of 5%, four-year bonds date

Legacy issues $325,000 of 5%, four-year bonds dated January 1,2021 , that pay interest semiannually...

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Accounting

image Legacy issues $325,000 of 5%, four-year bonds dated January 1,2021 , that pay interest semiannually on June 30 and December 31 . They are issued when the market rate is 8%. HINT: You must use the PV formula or function in Excel/Google Sheets to determine th price of the bonds. Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 2. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 3. Prepare an effective interest amortization table for the bonds' first two years. 4. Prepare the journal entries to record the first two interest payments. Complete this question by entering your answers in the tabs below. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. HINT: Enter the bonds' selling price as a negative number

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