On June 1, 202X, Lisua Corporation issued $300,000 of 10%, 5-year bonds for $324,465, yielding a market rate of 8%. Interest is paid on December 1 and June 1. Lisua Corporation uses the interest method to amortize the premium.
1. Prepare an amortization schedule for the first three semiannual periods.
2. Prepare journal entries to record the following:
a. Bond issue on June 1.
b. Semiannual interest payment and amortization of premium on December 1.