Question: 1) Company issues 5%, 10-year bonds (par value = $1,000,000) on 1 January 2012 for950,000. Interest is paid semiannually on 30 June and 31 December.

1) Company issues 5%, 10-year bonds (par value = $1,000,000) on 1 January 2012 for950,000. Interest is paid semiannually on 30 June and 31 December. a) How much is the bond discount or premium? b) How much total bond interest expense will be recognized over the life of these bonds? c) Prepare general journal entries to record: issuance of the bonds on 1 January, first interest payment on 30 June

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