During two consecutive years, Peters Corporation completed the following transactions:

Instructions Record the transactions in general journal form.
Check Figure Year 2 adjustment debit, $2,000

Transcribed Image Text:

Year 1 Jan. 2 June 30 Issued $2,000,000 face value 20-year, 9 percent bonds, dated Jan- uary 1 of this year, at 102. Interest is payable semiannually on June 30 and December 31. Paid semiannual interest on bonds. Dec. 31 Paid semiannual interest on bonds. Year 2 31 31 Recorded adjusting entry for amortization of premium on bonds. Closed Interest Expense account June 30 Paid semiannual interest on bonds. Dec. 31 Paid semiannual interest on bonds. 31 Recorded adjusting entry for amortization of premium on bonds. 31 Closed the Interest Expense account.