Straight-Line Premium Amortization
On January 1, 2013, Hackman Corporation issued $1 million face value 8% bonds dated January 1, 2013, for $1,026,000. The bonds pay interest semiannually on June 30 and December 31 and are due December 31, 2017. Hackman uses the straight-line amortization method.
Required: Record the issuance of the bonds and the first two interest payments. For a compound transaction, if an amount box does not require an entry, leave it blank.