Question: 1. On January 1, 2012, Lizzy's Lemonade issues 7%, 15-year bonds with a face amount of $90,000 for $82,219, priced to yield 8%. Interest is paid semiannually. What amount of interest expense will be recorded on June 30, 2012, the first interest payment date?
2. On January 1, 2012, Lyle's Limeade issues 3%, 20-year bonds with a face amount of $80,000 for $69,034, priced to yield 4%. Interest is paid semiannually. What amount of interest expense will be recorded in the December 31, 2012, annual income statement?