Solve the below problem:
Q1. Heathrow issues $2,500,000 of 6%, 15-year bonds dated January 1, 2011, that pays interest semiannually on June 30 and December 31. The bonds are issued at a price of $2,160,279.
a. Prepare the January 1, 2011, journal entry to record the bonds issuance
2.(a) For each semiannual period, complete the tables below to calculate the cash payment.
(b) For each semiannual period, complete the tables below to calculate the straight-line discount amortization.
(c) For each semiannual period, complete the tables below to calculate the bond interest expense.
Q3. Complete the tables below to calculate the total bond interest expense to be recognized over the bonds' life.
Q4. Prepare the first two years of an amortization table using the straight-line method. Semiannual period end unamortized discount carrying value 01/01/2011 06/30/2011 12/31/2011 06/30/012 12/31/2012
Q5. Prepare the journal entries to record the first two interest payments.