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Recording Bond Issue and First Interest Payment with Discount (Effective-Interest Amortization) On January 1, 2018,...

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Recording Bond Issue and First Interest Payment with Discount (Effective-Interest Amortization) On January 1, 2018, Choi Corp. sold a $600,000, 3.5 percent bond issue (4.5 percent market rate). The bonds were dated January 1, 2018, pay interest each June 30 and December 31, and mature in four years. Required: 1. Give the journal entry to record the issuance of the bonds. 2. Give the journal entry to record the interest payment on June 30, 2018. Use effective-interest amortization. 3. Show how the bond interest expense and the bonds payable should be reported on the June 30, 2018, income statement and balance sheet Journal DATE ACCOUNTS AND EXPLANATIONS ST REF DEBIT | CREDIT Jan1 Jun 30 Denote the interest expense per period by i and the number of periods to maturity by n To compute the present value of the principal, divide the amount by (1 + To compute the present value of the interest payments, multiply the amount by

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