During Year $1$ and Year $2,$ Agatha Corporation completed the following transactions relating to its bond issue. The corporation$$s fiscal year is the calendar year.

Year $1$

January $1$ Issued $$330,000$ of $10-$year, $7$ percent bonds for $$318,000.$ The annual cash payment for interest is due on December $31.$

December $31$ Recognized interest expense, including the straight$-$line amortization of the discount, and made the cash payment for interest.

December $31$ Closed the interest expense account.

Year $2$

December $31$ Recognized interest expense, including the straight$-$line amortization of the discount, and made the cash payment for interest.

December $31$ Closed the interest expense account.

Journal Entrys

Issued $$330,000$ of $10-$year, $7$ percent bonds for $$318,000.$ The annual cash payment for interest is due on December $31.$

Recognized interest expense, including the straight$-$line amortization of the discount, and made the cash payment for interest.

Closed the interest expense account.

Recognized interest expense, including the straight$-$line amortization of the discount, and made the cash payment for interest.

Closed the interest expense account.