Information taken from a Sears, Roebuck and Company annual report follows.

Required
1. How much interest expense did the company record during Year 2 on the 7% debentures? How much of the original issue discount was amortized during Year 2?
2. How much interest expense did the company record during Year 2 on the zero coupon bonds?
3. Suppose that interest payments on the participating mortgages are made on December31 of each year. What journal entry did the company make in Year 2 to recognize interest expense on this debt?
4. How much cash interest did the company pay out during Year 2 on the 7% debentures and the zero couponbonus?

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December 31 Year 2 Year l Long-Term Debt (S in millions) 7% debentures, $300 million face value, due Year 11, Zero coupon bonds, $500 million face value, due Participating mortgages, S850 million face value, $ 188.6 S 182.7 effective rate $14.6% Year 8, effective rate 12.0% due Year 5, effective rate 8.7%, collateralized by 267.9 239.2 833.9 16,329.2 S17,585.0 Sears Tower and related properties 834.5 12,444.2 $13,735.2 Various other long-term debt Total long-term debt