Bonds Issued at a Premium (Straight Line)}

On December 31, 2017, Solomon Crafts issued 60,000 eight-year bonds with \(\$ 1,000\) face value. External markets value the bonds at \(\$ 630,000\) more than face value. The stated rate of interest on Solomon's bonds is \(5 \%\), and interest is paid annually on December 31 .

\section*{Required:}

Prepare the necessary journal entry on December 31,2019 , assuming the straight-line method is followed.

Brief Exercise