Question & Answer: Problem 10-2A Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2013, that pay interest semiannually on Strai…..

Problem 10-2A Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2013, that pay interest semiannually on Straight-Line: Amortization of June 30 and December 31. The bonds are issued at a price of $3,456,448. bond discount P1 P2 Required 1. Prepare the January 1, 2013, journal entry to record the bonds’ issuance. 2. For each semiannual period, compute (a) the cash payment, (b) the straight-line discount amortization, mhhe.com/wildFINMAN5e and (c) the bond interest expense. 3. Determine the total bond interest expense to be recognized over the bonds’ life. Check (3) $4,143,552 4) 12/31/2014 carrying4. Prepare the first two years of an amortization table like Exhibit 10.7 using the straight-line method value, $3,528,920 5. Prepare the journal entries to record the first two interest payments.