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The Alpha Corporation issues $5,000,000 of 5%, 15 year bonds dated January 1, 2014, that...

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Accounting

The Alpha Corporation issues $5,000,000 of 5%, 15 year bonds dated January 1, 2014, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $4,750,000

1) Prepare the journal entry to record the bond's issuance on January 1, 2014.

2) Calculate the cash payment, the straight-line discount amortization, and the bond interest expense for each semi-annual period. (This will be the same entry over-and-over again).

3) Use #2 to prepare the first interest payment.

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