Melina Company issued $180,000, 7%, 10-year bonds on January 1, 2007, for issuance of bonds, payment $193,248. This price resulted in an effective interest rate of 6% on the bonds. Interest is of interest, and amortization payable annually on January 1. Melina uses the effective-interest method to amortize of premium using effective- bond premium or discount.

interest method.

(SO 5, 9) Instructions Prepare the journal entries (rounded to the nearest dollar) to record:

(a) The issuance of the bonds.

(b) The accrual of interest and the premium amortization on December 31, 2007.

(c) The payment of interest on January 1, 2008.

Prepare journal entries to