Problem 1 - Chapter 14 - Band Discount \& Entries for Bond Payable Transactions On July 1, Year 1, Khatri Industries Inc issued $19,800,000 of 10 -vear, 6\% bonds at a market (effective) interest rate of 5\%, receiving cash of 517,945,000. Interest on the borids is payable semiannually on December 31 and June 30 . The fiscal year of the company is the calendar year. 1. Joumalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1. 2. Journalize the entries to record the following: a. The first semiannual interest papment on December 31 , Year 1 , and the amortization of the bond discount, using the straight-line method. Round to the nearest dollar. b. The interest payment on June 30, Year 2, and the amortization of the bond discount, using the straight-line method. Round to the nearest dollar. 3. Determine the total interest expense for Year 1