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 9C1. Table 9C2 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.) Answer is complete but not entirely correct. No 1 Date January 01 Cash Bonds payable General Journal Premium on bonds payable 000 Debit Credit 10,165,750 1,000,000 165,750 1 2. Prepare the journal entry to record the interest payment on December 31 of this year Use effective interest amortization and a premium account. (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.) Answer is complete but not entirely correct. No Date General Journal 1 December 31 Interest expense Premium on bonds payable Cash Debit Credit 813.260 O 11.740 825,000 < Prev 3 of 3 Next