09 Exercise 10 16A Algo Straight line amortization for bonds Issued at a discount LO 10 4 On January 1 Year 1 Price Company Issued 122 000 of five year 5 percent bonds at 94 Interest is payable annually on Decembe The discount is amortized using the straight line method Required Prepare the Journal entries to record the bond transactions for Year 1 and Year 2 If no entry is required for a transaction event select No Journal entry required in the first account field View transaction liet Journal entry worksheet 1 2 3 Record the entry for issuance of bonds Note Enter debits before credits