Straight-line discount amortization, Financial Accounting

Heathrow issues $2,000,000 of 6%, 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 $1,728,224.


                             a. Prepare the January 1, 2011, journal entry to record the bonds' issuance

                             b. For every semiannual period, compute the cash payment.

                             c.For every semiannual period, compute the the straight-line discount amortization.

                             d.For every semiannual period, compute the bond interest expense.


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