Legacy issues $690,000 of 7.0%, four-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. They are issued at $623,078 and their market rate is 10% at the issue date. Required: 1. Prepare the January 1, 2017, 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.

1-Record the issue of bonds with a par value of $690,000 cash on January 1, 2017 at an issue price of $623,078.

Date General Journal Debit Credit Jan 01, 2017 Total bond interest expense over life of bonds: Amount repaid: payments of Par value at maturity Total repaid 0 Less amount borrowed Total bond interest expense $0 Semiannual Interest Period-End Cash Interest Paid Bond Interest Expense Discount Amortization Unamortized Discount Carrying Value 01/01/2017 06/30/2017 12/31/2017 06/30/2018 12/31/2018 1-Record the first interest payment on June 30, 2017. 2-Record the second interest payment on December 31, 2017. Date General Journal Debit Credit Dec 31, 2017