amortization Hon of bond premium for the year, using the straight-line method of amortization. III. (5 points) On the first day of the current fiscal year, $6,000,000 of 20-year, 10% bonds, with interest payable semiannually, were issued for $6,500,000. Present entries to record the following transactions for the current fiscal year: a) Issuance of the bonds. b) First semiannual interest payment (record as separate entry from premium amortization) c) Amortization of bond premium for the year, using the straight-line method of amortization