Analyzing and Reporting Financial Statement Effects of Bond Transactions On January 1, 2016, Hutton Corp. issued $200,000 of 15-year, 14% bonds payable for $261,489 yielding an effective interest rate of 10%. Interest is payable semiannually on June 30 and December 31. Required a. Show computations to confirm the issue price of $261,489. (Use a calculator or Excel for your calculations. Round your answers to the nearest dollar.) Present value of principal repayment Present value of interest payments elling price of bonds b. Prepare journal entries to record the bond issuance, semiannual interest payment and premium amortization on June 30, 2016, and semiannual interest payment and premium amortization on December 31, 2016. Use the effective interest rate method Round your answers to the nearest dollar.)