Refer to the bond details in Problem 14-2B, except assume that the bonds are issued at a price of $4,192,932.

Required

1. Prepare the January 1, 2017, journal entry to record the bonds' issuance.

2. For each semiannual period, compute (a) the cash payment, (b) the straight-line premium amortization, and (c) the bond interest expense.

3. Determine the total bond interest expense to be recognized over the bonds' life.

4. Prepare the first two years of an amortization table like Exhibit 14.11 using the straight-line method.

5. Prepare the journal entries to record the first two interest payments.

Exhibit 14.11

Semiannual Unamortized Carrying Premium Period-End Value (0) 12/31/2017 .... $3,546 $103,546 2,659 102,659 (1) 6/30/2018 .... (2) 12/31/2018 1,772 101,772 (3) 6/30/2019 885 100,885 (4) 12/31/2019 100,000