1) What journal entry will Johnson make on June 30, 2023 to record the third interest payment?

	Dr. Interest Expense 651,181 Dr. Premium on Bonds Payable 148,819 Cr. Cash 800,000
	Dr. Interest Expense 651,181 Dr. Discount on Bonds Payable 148,819 Cr. Cash 800,000
	Dr. Interest Expense 651,181 Cr. Premium on Bonds Payable 148,819 Cr. Cash 800,000
	Dr. Cash 651,181 Dr. Premium on Bonds Payable 148,819 Cr. Interest Expense 800,000

2)What is the FACE VALUE of the bonds?

	$1,850,525
	$20,000,000
	$800,000
	$21,850,525

3)Do the bonds pay interest ANNUALLY or SEMIANNUALLY?

	ANNUALLY
	SEMIANNUALLY

4)How much TOTAL CASH will the company pay for interest in 2023?

	$659,724
	$1,315,240
	$800,000
	$1,600,000

Johnson Inc. prepares the following effective interest amortization table for its bonds payable. Interest Payment Date June 30, 2022 Dec 31, 2022 June 30, 2023 Dec 31, 2023 June 30, 2024 Dec 31, 2024 June 30, 2025 Dec 31, 2025 June 30, 2026 Dec 31, 2026 June 30, 2027 Dec 31, 2027 Cash Payment Amount $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 Interest Expense $659,724 $655,516 $651,181 $646,717 $642,118 $637,382 $632,503 $627,478 $622,303 $616,972 $611,481 $605,825 Decrease in Premium $140,276 $144,484 $148,819 $153,283 $157,882 $162,618 $167,497 $172,522 $177,697 $183,028 $188,519 $194,175 Premium $1,850,525 $1,706,041 $1,557,222 $1,403,938 $1,246,057 $1,083,438 $915,941 $743,420 $565,722 $382,694 $194,175 $0 Book Value $21,850,525 $21,706,041 $21,557,222 $21,403,938 $21,246,057 $21,083,438 $20,915,941 $20,743,420 $20,565,722 $20,382,694 $20,194,175 $20,000,000