3. Prepare an effective interest amortization table for the bonds' first two years

Problem 10-8AB Effective Interest: Amortization of bond discount LO P5 Legacy issues $640,000 of 8.5%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $570,443 when the market rate is 12%. Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 2. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 3. Prepare an effective interest amortization table for the bonds' first two years. 4. Prepare the journal entries to record the first two interest payments. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare an effective interest amortization table for the bonds' first two years. Semiannual Interest Cash Interest Bond Interest Discount Unamortized Paid Expense Amortization Discount Carrying Value Period-End 01/01/2019 $ 69,557 $ 570,443 06/30/2019 60,862 579,138 12/31/2019 52, 167 587,833 06/30/2020 93,472 587,833 12/31/2020 34,777 587,833