1. Journalize the following transactions of Trekker Boot Company:

2. At December 31, 2020, after all year-end adjustments, determine the carrying amount of Trekker's bonds payable, net.
3. For the six months ended July 1, 2020, determine the following for Trekker:

a. Interest expense

b. Cash interest paid What causes interest expense on the bonds to exceed cash interest paid?

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2020 Jan. 1 July 1 Issued $600,000 of 8%, 10-year bonds at 97. Paid semi-annual interest and amortized bonds by the straight-line method on the 8% bonds payable. Dec. 31 Accrued semi-annual interest expense and amortized bonds by the straight-line method on the 8% bonds payable. 2021 Jan. 1 Paid semi-annual interest. 2030 Jan. 1 Paid the 8% bonds at maturity.