Entries for Issuing Bonds and Amortizing Premium by Straight$-$Line Method

receiving cash of $$8,787,488.$ Interest is payable semiannually on April $1$ and October $1.$

a$.$ Journalize the entry to record the issuance of bonds on April $1.$ If an amount box does not require an entry, leave it blank.

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Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account.

The straight$-$line method of amortization provides equal amounts of amortization over the life of the bond.

the semiannual interest payment. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.