Response to the following :
Effective-Interest Amortization of Bond Premiums
Refer to the data in problem. Using the effective-interest method of bond premium amortization, make the necessary journal entries to record the first two interest payments received on the bonds.
Problem:
Straight-Line Amortization of Bond Premiums
The company purchased $65,000, 10%, three-year bonds for $68,407.39. Interest on the bonds is payable semiannually. Using straight-line amortization of the bond premiums, make the necessary journal entry(ies) to be made at each interest payment date to record the semiannual interest payment.