Bonds Issued at a Premium Bryant and Nelson Company issued the following bonds at a premium: Date of issue and sale: May 1, 20-1 Principal amount: $390,000 Sale price of bonds: 102 Denomination of bonds: $1,000 Life of bonds: 10 years Stated rate: 8%, payable semiannually on October 31 and April 30 Prepare journal entries for the transactions below. If an amount box does not require an entry, leave it blank. If required, round your answers to two decimal places. a. Issuance of the bonds at a premium. DOC. POST. NO. REF. DEBIT CREDIT DATE ACCOUNT TITLE 1 20-1 May 01 Cash Bonds Payable 397,800 390,000 V 2 Premium on Bonds Payable 97,800 X 3 Feedback Page: 1 Check My Work Partially correct b. Interest payment and premium amortization on the bonds on October 31. Page: 1 DATE ACCOUNT TITLE DOC. POST. NO. REF. DEBIT CREDIT 1 Oct 31 Bond Interest Expense 10,710 Premium on Bonds Payable 4,890 N Cash 15,600 3 Feedback Check My Work Partially correct c. Year-end adjustment on the bonds. Page: 1 CREDIT DATE ACCOUNT TITLE DOC. POST. NO. REF. DEBIT