590 Chapter 14 Long-Term Liabilities Problem 14-6B Roney issues $120,000 of 6%, 15-year bonds dated January 1, 2011, that pay interest semiannually on Straight-line amortization of June 30 and December 31. They are issued at $99,247, and their market rate is 8% at the issue date. bond discount P1 P2 Required 1. Prepare the January 1, 2011, journal entry to record the bonds' issuance. Check (2) $128,753 2. Determine the total bond interest expense to be recognized over the life of the bonds. (3) 6/30/2012 carrying 3. Prepare a straight-line amortization table like the one in Exhibit 14.7 for the bonds' first two years. value, $101,323 4. Prepare the journal entries to record the first two interest payments. Problem 14-7BB Refer to the bond details in Problem 14-6B. Effective interest amortization of bond discount Required P1 P2 1 1. Prepare the January 1, 2011, journal entry to record the bonds' issuance. 2. Determine the total bond interest expense to be recognized over the bonds' life. Check (2) $128,753; 3. Prepare an effective interest amortization table like the one in Exhibit 14B.1 for the bonds' first two (3) 6/30/2012 carrying years. value, $100,402 4. Prepare the journal entries to record the first two interest payments