[The following information applies to the questions displayed below.] Legacy issues $740,000 of 7.5%, four-year bonds...

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[The following information applies to the questions displayed below.] Legacy issues $740,000 of 7.5%, four-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $680,186 when the market rate is 10%. 4. Prepare the journal entries to record the first two interest payments. > Answer is complete but not entirely correct. No 1 Date June 30 General Journal Debit Credit Bond interest expense 34,409 Discount on bonds payable 6,259 Cash 27,750 2 December 31 Bond interest expense 34,383 Discount on bonds payable 6,633 Cash 27,750 Legacy issues $740,000 of 7.5%, four-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $680,186 when the market rate is 10%. 3. Prepare a straight-line amortization table for the bonds' first two years. Note: Round your intermediate and final answers to the nearest whole dollar. Semiannual Period- End Answer is complete and correct. Unamortized Discount Carrying Value 01/01/2021 $ 59,814 $ 680,186 06/30/2021 52,337 687,663 12/31/2021 44,860 695,140 06/30/2022 37,383 702,617 12/31/2022 29,906 710,094 W 4 Required information [The following information applies to the questions displayed below.] Legacy issues $740,000 of 7.5%, four-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $680,186 when the market rate is 10%. 2. Determine the total bond interest expense to be recognized over the bonds' life. Answer is complete and correct. Total bond interest expense over life of bonds: Amount repaid: 8 payments of $ 27,750 Par value at maturity $ 222,000 740,000 Total repaid Less amount borrowed Total bond interest expense 962,000 (680,186) $ 281,814 Required information [The following information applies to the questions displayed below.] Legacy issues $740,000 of 7.5%, four-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $680,186 when the market rate is 10%. Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. Answer is complete and correct. General Journal Debit Credit 680,186 59,814 740,000 No 1 Date January 01 Cash Discount on bonds payable Bonds payable [The following information applies to the questions displayed below.] Legacy issues $740,000 of 7.5%, four-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $680,186 when the market rate is 10%. 4. Prepare the journal entries to record the first two interest payments. > Answer is complete but not entirely correct. No 1 Date June 30 General Journal Debit Credit Bond interest expense 34,409 Discount on bonds payable 6,259 Cash 27,750 2 December 31 Bond interest expense 34,383 Discount on bonds payable 6,633 Cash 27,750 Legacy issues $740,000 of 7.5%, four-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $680,186 when the market rate is 10%. 3. Prepare a straight-line amortization table for the bonds' first two years. Note: Round your intermediate and final answers to the nearest whole dollar. Semiannual Period- End Answer is complete and correct. Unamortized Discount Carrying Value 01/01/2021 $ 59,814 $ 680,186 06/30/2021 52,337 687,663 12/31/2021 44,860 695,140 06/30/2022 37,383 702,617 12/31/2022 29,906 710,094 W 4 Required information [The following information applies to the questions displayed below.] Legacy issues $740,000 of 7.5%, four-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $680,186 when the market rate is 10%. 2. Determine the total bond interest expense to be recognized over the bonds' life. Answer is complete and correct. Total bond interest expense over life of bonds: Amount repaid: 8 payments of $ 27,750 Par value at maturity $ 222,000 740,000 Total repaid Less amount borrowed Total bond interest expense 962,000 (680,186) $ 281,814 Required information [The following information applies to the questions displayed below.] Legacy issues $740,000 of 7.5%, four-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $680,186 when the market rate is 10%. Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. Answer is complete and correct. General Journal Debit Credit 680,186 59,814 740,000 No 1 Date January 01 Cash Discount on bonds payable Bonds payable