21. On Jan. 1, 2014, Athens Company sold $1,500,000 of 10-year, 8% bonds, dated Jan 1, 2020 for $1,540,000 which is a $40,000 premium. The bonds were purchased by Palermo Co. on the issue date at the issue price (no accrued interest). Present entries to record the following transactions for both the issuer or seller -Athens and the investor or buyer - Palermo: 12 points

Athens Company who is the seller of the bonds and debits cash since he sold the bonds
(1)	Issuance of bonds.
(2)	Payment of the two semiannual interest payments on June 30th and December 31, 2014.
(3)	Amortization by straight-line method of bond premium for an entire year on December 31, 2014.

(1)	Cash
	?
(2)	June 30 Interest Expense Dec. 31
(3)	Premium on Bonds Payable ?

	22. Palermo Company who is the investor and records a Bond Investment in Athens. Co. 11 points
	(1)		Purchase of bonds. Investment in Athens Co. Bonds
	(2)		Receipt of first and second semiannual interest amount on June 30th and December 31, 2014.
	(3)		Amortization by straight-line method of bond investment on December 31, 2014.
		$ Investment in Athens Co. Bonds

23. Journalize the entries to record the following selected transactions of Owens Co. an investor. 12 points:

(a)	Purchased $100,000 of Kelly Co. 8% bonds at 102% plus three months accrued interest (100,000 * .08 * 3/12).
(b)	Received the first semiannual interest payment.