Problem
On June 1, 20X6 a corporation issued $800,000 of 9.5%, 8-year bonds at 1031/2 to yield 8.5%. interest is paid semiannually on December 1 and June 1, use straight, line method of a. Prepare the journal entry to issue the bonds on June 1, 2006. amortization Prepare the journal entry to issue the bonds on June 1, 2006. Prepare the journal entry to record the first interest payment and the amortization of the premium on December 1, 20X6. Prepare the necessary adjusting entry on December 31, 20X6.