Accounting for Bonds Issued at a Premium

Sealon Corporation issued $$100,000$ of $10\%,10-$year bonds at $102$ on April $1,2018.$ Interest is payable

semiannually on April $1$ and October $1.$ Sealon Corporation uses the calendar year for financial

reporting.

$-$Record the necessary entries to account for these bonds on the following three dates. $($Use the

straight$-$line method to amortize the bond premium.$)$

a$.$ April $1,2018$

b$.$ October $1,2018$

c$.$ December $31,2018$

$-$Show how the bonds would be reported on the balance sheet of Sealon Corporation on December $31,2018.$