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Problem 14-4A Straight-Line: Amortization of bond discount P2 Legacy issues $325,000 of 5%,...

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Accounting

Problem 14-4A Straight-Line: Amortization of bond discount P2
Legacy issues $325,000 of 5%, four-year bonds dated January 1,2019, that pay interest semiannually on June 30 and December 31. They are issued at $292,181 when the market rate is 8%.
Required
Prepare the January 1 journal entry to record the bonds' issuance.
Determine the total bond interest expense to be recognized over the bonds' life.
Check (2) $97,819
Prepare a straight-line amortization table like the one in Exhibit 14.7 for the bonds' first two years.
(3)12/31/2020 carrying value, $308,589
Prepare the journal entries to record the first two interest payments.
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