Price Hotel, Inc., completed the following selected transactions:

Instructions 1. Record the transactions in general journal form.
2. Post the entries to the Interest Expense account. Label the adjusting, closing, and reversing entries.
Check Figure Year 2 adjustment, debit to Interest Expense, $30,000

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Year 1 Apr. 1 Oct. 1 Issued $1,200,000 worth of 20-year, 10 percent bonds, dated April 1 of this year, at 105. Interest is payable semiannually on October 1 and April 1. Paid semiannual interest on bonds. Dec. 31 Recorded adjusting entry for accrued interest payable. 31 Recorded adjusting entry for amortization of premium on bonds. Closed Interest Expense account. 31 Year 2 Jan. 1 Apr. 1 Oct. 1 Dec. 31 31 Reversed adjusting entry for accrued interest payable. Paid semiannual interest on bonds. Paid semiannual interest on bonds. Made adjusting entry to record accrued interest payable. Made adjusting entry to record amortization of premium on bonds. 31 Closed Interest Expense account.