Problem $10-1$B Straight$-$Line: Amortization of bond discount ubrace$(ubrace{)}_{P2}$

Romero issues $$3,400,000$ of $10\%,10-$year bonds dated January $1,2021,$ that pay interest semiannually on June $30$ and December $31.$ The

bonds are issued at a price of $$3,010,000.$

Required

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

For each semiannual period, compute $(a)$ the cash payment, $(b)$ the straight$-$line discount amortization, and $(c)$ the bond interest

expense.

Determine the total bond interest expense to be recognized over the bonds' life.

Prepare the first two years of a straight$-$line amortization table like Exhibit $10\mathrm{.}7.$

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

Problem $10-2$B Straight$-$Line: Amortization of bond premium $\frac{?}{{?}_{\frac{?}{?}}}$

Problem $10-2$B Straight$-$Line: Amortization of bond premium P$3$

Refer to the bond details in Problem $10-1$B$,$ except assume that the bonds are issued at a price of $$4,192,932.$

Required

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

For each semiannual period, compute $(a)$ the cash payment, $(b)$ the straight$-$line premium amortization, and $(c)$ the bond interest

expense.

Determine the total bond interest expense to be recognized over the bonds' life.

Check

$(3)$ $$2,607,068$

Prepare the first two years of a straight$-$line amortization table like Exhibit $10\mathrm{.}11.$

$(4)6/30/2022$ carrying value, $$4,073,991$