On July 1, Year 1, Danzer Industries Inc. issued $68,000,000 of 20-year, 11% bonds at a...

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On July 1, Year 1, Danzer Industries Inc. issued $68,000,000 of20-year, 11% bonds at a market (effective) interest rate of 14%,receiving cash of $54,404,080. Interest on the bonds is payablesemiannually on December 31 and June 30. The fiscal year of thecompany is the calendar year.
Required:
For all journal entries: If an amount box does not require anentry, leave it blank.
1. Journalize the entry to record the amount ofcash proceeds from the issuance of the bonds.
Year 1 July 1 Cash
Discount on Bonds Payable
Bonds Payable
Feedback
2. Journalize the entries to record thefollowing:
a. The first semiannual interest payment on December 31, Year 1,and the amortization of the bond discount, using the interestmethod. (Round to the nearest dollar.)
Year 1 Dec. 31 Interest Expense
Discount on Bonds Payable
Cash
Feedback
b. The interest payment on June 30, Year 2, and the amortizationof the bond discount, using the interest method. (Round to thenearest dollar.)
Year 2 June 30 Interest Expense
Discount on Bonds Payable
Cash
Feedback
3. Determine the total interest expense forYear 1.
$

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On July 1, Year 1, Danzer Industries Inc. issued $68,000,000 of20-year, 11% bonds at a market (effective) interest rate of 14%,receiving cash of $54,404,080. Interest on the bonds is payablesemiannually on December 31 and June 30. The fiscal year of thecompany is the calendar year.Required:For all journal entries: If an amount box does not require anentry, leave it blank.1. Journalize the entry to record the amount ofcash proceeds from the issuance of the bonds.Year 1 July 1CashDiscount on Bonds PayableBonds PayableFeedback2. Journalize the entries to record thefollowing:a. The first semiannual interest payment on December 31, Year 1,and the amortization of the bond discount, using the interestmethod. (Round to the nearest dollar.)Year 1 Dec. 31Interest ExpenseDiscount on Bonds PayableCashFeedbackb. The interest payment on June 30, Year 2, and the amortizationof the bond discount, using the interest method. (Round to thenearest dollar.)Year 2 June 30Interest ExpenseDiscount on Bonds PayableCashFeedback3. Determine the total interest expense forYear 1.$