Question: Roney issues $120,000 of 6%, 15-year bonds dated January 1, 2011, that pay interest semiannually on June 30 and December 31. They are issued at $99,247, and their market rate is 8% at the issue date.
Required: 1. Prepare the January 1, 2011, journal entry to record the bonds' issuance.
2. Determine the total bond interest expense to be recognized over the life of the bonds.
3. Prepare a straight-line amortization table like the one in Exhibit for the bonds' first two years.
4. Prepare the journal entries to record the first two interest payments.
