Bonds Payable Sold at a Premium; Effective Interest Amortization On December 31, Kay Company issued $1,200,000 of five-year, 13 percent bonds payable for $1,339,116,yielding an effective interest rate of ten percent. Interest is payable semiannually on June 30 and December 31. Determine the financial statement effect of: (a) the issuance of the bonds (b) the first semiannual interest payment and premium amortization (effective interest method) on June 30 (c) the second semiannual interest payment and premium amortization on December 31 Round amounts to the nearest dollar. a. Bond issuance Transaction b. First interest payment and premium amortization c. Second interest payment and pemium amortization Check Previous Save Answers Balance Sheet Income Statement Assets = Liabilities + Equity Revenues Expenses = Net Income