Analyzing and Reporting Financial Statement Effects of Bond Transactions

On January $1,$ Hutton Corp. issued $$400,000$ of $15-$year, $11\%$ bonds payable for $$503,753,$ yielding an effective interest rate of $8\%.$ Interest is payable semiannually on June $30$ and December $31.$

a$.$ Prepare journal entries to record the bond issuance, semiannual interest payment, and premium amortization on June $30,$ and semiannual interest payment and premium amortization on December $31.$ Use

the effective interest rate method.

Note: Carry all decimals in calculations; round the final answer to the nearest dollar.

b$.$ Post the journal entries to their respective T$-$accounts.

Note: Enter your answers, in transaction order, in the first open field of the appropriate column in each account.