Burroughs Corporation (with a December 31 year-end) issued $412,000, 5% bonds due in 7 years on May 1, 2018. Interest is paid semi-annually on October 31 and April 30 of each year. On the issuance date, the market rate of interest was 4%, resulting in a price of $437,000 for these bonds. The premium/discount is amortized using the straight line amortization method. Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number For transactions with more than one debit or credit enter the accounts in alphabetical order a) Is this bond issued at a discount or at a premium? Premium Prepare the journal entry on May 1, 2018, to issue the bonds. Date Account Title and Explanation Debit Credit May ? Cash 437000 Discount on Bonds Bonds Payable 412000 Issued bonds b) Prepare the journal entry on October 31, 2018, to record the first interest payment and the amortization of the premium/discount Date Account Title and Explanation Debit Credit 1Oct 31 Interest Expense Discount on bonds Paid interest on bonds Shodiny December 31, 2018 b) Prepare the journal entry on October 31, 2018, to record the first interest payment and the amortization of the premium/discount. Date Account Title and Explanation Debit Credit Oct 31 Interest Expense Cash Discount on Bonds Paid interest on bonds c) Prepare the adjusting entry on December 31, 2018 Date Account Title and Explanation Debit Credit Dec 31 Interest Expense Discount on Bonds Interest Payable Accrued interest on bonds