On January 1, Hutton Corp. issued \(\$ 300,000\) of 15 -year, \(10 \%\) bonds payable for \(\$ 351,876\), yielding an effective interest rate of \(8 \%\). Interest is payable semiannually on June 30 and December 31.

(a) Show computations to confirm the issue price of \(\$ 351,876\).

(b) Indicate the financial statement effects using the template for (1) bond issuance, (2) semiannual interest payment and premium amortization on June 30 of the first year, and (3) semiannual interest payment and premium amortization on December 31 of the first year.