1. What would be the total interest expense recognized for the bond issue over its full term? (Hint: this question is not asking for the sum of all interest expenses recorded every period.)

2. Assume Lopez Corporation calls the bonds at 103 immediately after the interest payment on 1/1/2023 and retires them. Provide the journal entry for the early extinguishment of the bonds.

Lopez Corporation issued $700,000 callable bonds on January 1, 2021. The bonds have a 10- year term and pay interest semiannually on July 1 and January 1. The following is the partial bond amortization schedule for the bonds. Effective Decrease in Outstanding Date Cash Interest Balance Balance 1/1/2021 735,533 7/1/2021 42,000 36,777 5,223 730,310 1/1/2022 42,000 36,516 5,484 724,826 7/1/2022 42,000 36,241 5,759 719,067 1/1/2023 42,000 35,953 6,047 713,020 Use the above information about the bonds to answer the following five questions