Question

PLEASE HELP!!! I need all the blanks answered to this question. With clear, correct and complete answers. Thank you in advanced****

Hillside issues $2,300,000 of 8%, 15-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,987,457. Required: 1. Prepare the January 1, 2017, journal entry to record the bonds’ issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight-line discount amortization. 2(c) For each semiannual period, complete the table below to calculate the bond interest expense. 3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 4. Prepare the first two years of an amortization table using the straight-line method. 5. Prepare the journal entries to record the first two interest payments.

• 1:Record the issue of bonds with a par value of $2,300,000 cash on January 1, 2017 at an issue price of $1,987,457.

Note: Enter debits before credits.

REQ 1: Record the issue of bonds with a par value of $2,300,000 cash on January 1, 2017 at an issue price of $1,987,457.

Date	General journal	Debit	Credit
Jan 01, 2017

REQ 2a to 2c: For each semiannual period, complete the table below to calculate the cash payment, straight-line discount amortization and bond interest expense. (Fill in the blanks below the boxes in BOLD, please)

Par (Maturity) value	Annual Rate	Year	=	Semiannual cash interest pymnt
Par (Maturity) value	Bond Price	Discount on Bonds payable	Semiannual Periods	Straight-line discount arborization
Semiannual Cash Payment	Discount amortization	Bond interest expense

REQ 3: Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life

Total bond interest expense over life of bonds
Amount repaid: $___________________	payments of	#____________
Par value at maturity: _______________
Total Repaid:____________________
Less amount borrowed:__________________
Total bond interest expense: $_______________

REQ 4: Prepare the first two years of an amortization table using the straight-line method.

Semiannual Period end	Unamortized Discount	Carrying Value
01/01/2017
06/30/2017
12/31/2017
06/30/2018
12/31/2018

REQ 5:

Record the first interest payment on June 30, 2017. and then Record the second interest payment on December 31, 2017.

Date	General Journal	Debit	Credit
Jun 30, 2017

Date	General Journal	Debit	Credit
Dec 31, 2017

Answer 1

I have solved the above mentioned question in the attached sheet. In this question discount on bond has been recognised as the difference between amount received and payable and it has been amortized semiannualy on straight line basis. And interest is paid semiannualy on 8 %per annum. See the supporting sheets for complete answer.