Question: Please show ALL work! Thank you! Required information Problem 10-SA Straight-Line: Amortization of bond premium and discount LO P1, P2, P3 The following information applies
Please show ALL work! Thank you!


Required information Problem 10-SA Straight-Line: Amortization of bond premium and discount LO P1, P2, P3 The following information applies to the questions displayed below Legacy issues $720,000 of 6.5%, four-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31, They are issued at $683.649 and their market rate is 8% at the issue date. Problem 10-5A Part 1 Required: 1. Prepare the January 1, 2017, journal entry to record the bonds' issuance. Date Credit /Jan 01, 2017 Cash Discount on bonds payable 83 649 6,351 Bonds payable 720 Required information Problem 10-5A Straight-Line: Amortization of bond premium and discount LO P1, P2, P The following information applies to the questions displayed below Legacy issues $720,000 of 6.5%, four-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31, They are issued at $683,649 and their market rate is 8% at the issue date. Problem 10-5A Part 2 2. Determine the total bond interest expense to be recognized over the bonds life. bond interest expense over life of Amount repaid payments of Par value at maturity Total repaid Less amount borrowed bond interest expense Required information Problem 10-5A Straight-Line: Amortization of bond premium and discount LO P1, P2, P3 [The following information applies to the questions displayed below Legacy issues $720,000 of 6.5%, four-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31, They are issued at $683,649 and their market rate is 8% at the issue date. Problem 10-5A Part 3 3. Prepare a straight-line amortization table for the bonds' first two years Carrying 01/01/2017 06/30/2017 12/31/2017 06/30/2018 12/31/2018
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