E10-11 Recording Bond Issue and First Interest Payment with Premium (with Premium Account) LO10-3 On January 1 of this year, Bochini Corporation sold a $10 million, 8.25 percent bond issue. The bonds were also dated January 1 , had a yield of 8 percent, pay interest each December 31 , and mature 10 years from the date of issue. Use Table 9C.2. Required: 1. Prepare the journal entry to record the issuance of the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round time value factor to 4 decimal places. Enter your answers in dollars not in millions rounded to the nearest whole dollar.) Journal entry worksheet Note: Enter debits before credits. 2. Prepare the journal entry to record the Interest payment on December 31 of this year. Use effectlve-Interest amortization and a premlum account. (If no entry is requlred for a transactlon/event, select "No journal entry requlred" In the first account fleld. Round time value factor to 4 decimal places. Enter your answers In dollars not in millions rounded to the nearest whole dollar.) Journal entry worksheet Record payment of annual interest and amortization of premium for 12 months Note: Enter debits before credits. 3. Show how the bond interest expense and the bonds payable should be reported on the annual financlal statements for this year. (Enter your answers In dollars not In millions rounded to the nearest whole dollar.) TABLE 9C.1 TABLE 9C. 2