Legacy issues $325,000 of 5%, four-year bonds dated January 1, 2019, that pay interest semiannually onJune 30 and December 31. They are issued at $292,181 when the market rate is 8%.Required1. Prepare the January 1 journal entry to record the bonds’ issuance.2. Determine the total bond interest expense to be recognized over the bonds’ life.3. Prepare a straight-line amortization for the bonds’ first two years.4. Prepare the journal entries to record the first two interest payments.

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