Heathrow issues $1,600,000 of 9%, 15-year bonds dated January 1, 2011, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,958,394.
Prepare the January 1, 2011, journal entry to record the bonds' issuance.
A) For each semiannual period, compute the cash payment
B) For each semiannual period, compute the the straight-line premium amortization
C) For each semiannual period, compute the the bond interest expense
Determine the total bond interest expense to be recognized over the bonds' life,Prepare the journal entries to record the first two interest payments.