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Item5

Item 5 Part 3 of 4 1.66 points Item Skipped

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[The following information applies to the questions displayed below.]

Legacy issues $570,000 of 8.5%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $508,050 when the market rate is 12%.

3.Prepare a straight-line amortization table for the bonds' first two years.

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Item6

Item 6 Part 4 of 4 1.66 points Item Skipped

Required information

[The following information applies to the questions displayed below.]

Legacy issues $570,000 of 8.5%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $508,050 when the market rate is 12%.

4.Prepare the journal entries to record the first two interest payments.