Legacy issues $$610,000$ of $6\mathrm{.}5\%,$ four$-$year bonds dated January $1,2021,$ that pay interest semiannually on June $30$ and December $31.$ They are issued at $$540,981$ when the market rate is $10\%.$

Required Answer to this:

$1.$Lrepare 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 $1$

Prepare the January $1$ journal entry to record the bonds' issuance.

Journal entry worksheet