Prepare first two years of straight-line amortization table

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Question - Hillside issues $2,300,000 of 8%, 15-year bonds dated January 1, 2013, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $2,815,190.

1. Prepare the January 1, 2013, journal entry to record the bonds' issuance.

2.a) for each semiannual period, calculate the cash payment.

2.b) for each semiannual period, calculate the bond interest expense.

2.c) for each semiannual period, calculate the bond interest expense.

3. Calculate the total bond interest expense to be recognized over the bonds life.

4. Prepare the first two years of a straight-line amortization table.

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

Reference no: EM132838751

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