(Solved): On July 1, 20Y1, Lakeshore Gelato issued $900,000 of 10-year, 8% bonds at a market (effective) inter ...

On July 1, 20Y1, Lakeshore Gelato issued $900,000 of 10-year, 8% bonds at a market (effective) interest rate of 9%, receiving cash. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Determine the amount received for the bonds by using the tables shown in Appendix A of your eBook - - very bottom of the Table of Contents. (Round to the nearest dollar.) 2. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 20Y1. 3. Journalize the entry to record the following: a. The first semiannual interest payment on December 31, 20Y1, and the amortization of the bond discount, using the straight-line method. (Round to the nearest dollar.)