Question - Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2015, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $4,895,980.
Required:
a) Prepare the January 1, 2015, journal entry to record the bonds' issuance.
b) For each semiannual period, compute (a) the cash payment, (b) the straight-line discount amortization, and (c) the bond interest expense.
c) Determine the total bond interest expense to be recognized over the bonds' life.