4:06 Take me to the text On May 1, 2016, Ezzy Corporation issued a 4-year bond worth $367,000 with an interest rate of 8% per annum. Interest is to be paid semi-annually on October 31 and April 30. At the time of the issuance, the market interest rate was 12%. Ezzy Corporation amortizes any premium or discount using the effective interest method. Calculate the bond issue price and the resulting premium or discount. Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number For transactions with more than one debit or credit, enter the accounts in alphabetical order For bond calculations, use the PV tables in Appendix II of the textbook. Bond Issue Price: $ 321416 Premium or Discount: $ 45584 b) Prepare journal entries to record the following bonds payable transactions. 1) Issuance of bonds on May 1, 2016. Account Title and Date Explanation Debit Cash 321416 Done b) Prepare journal entries to record the following bonds payable transactions. 1) Issuance of bonds on May 1, 2016. Date Account Title and Explanation Debit Credit May 1 Cash 321416 Discount on Bonds 45584 367000 Bonds Payable To record bond issuance 2) Payment of interest and amortization of premium or discount on October 31, 2016. Date Account Title and Explanation Debit Credit 19285 Interest Expense Oct 31 Done 2) Payment of interest and amortization of premium or discount on October 31, 2016. Account Title and Explanation Debit Credit Date 19285 Oct 31 Interest Expense 14680 Cash 4605 Discount on Bonds To record first payment of interest and amortization 3) Accrual of interest and amortization of premium or discount on December 31, 2016, which is the company's year-end. Done amortization 3) Accrual of interest and amortization of premium or discount on December 31, 2016, which is the company's year-end. Date Account Title and Explanation Debit Credit Dec 31 Interest Expense 6520 Discount on Bonds 1627 Discount on Bonds To record payment of interest and amortization 5) Redemption of the bond for its face value one year before maturity on May 1. Date Account Title and Explanation Debit Credit Done