On January 1, 2011, Caldwell Company issued ($ 200,000) of five-year, 8 percent bonds at 103 .

Question:

On January 1, 2011, Caldwell Company issued $\$ 200,000$ of five-year, 8 percent bonds at 103 . Interest is payable semiannually on June 30 and December 31 . The premium is amortized using the straight-line method.

Required
Prepare the journal entries to record the bond transactions for 2011 and 2012.

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