Exercise 10-15A Straight-line amortization of a bond premium LO 10-5 (The following information applies to the questions displayed below.] The Square Foot Grill, Inc. issued $350,000 of 10-year, 7 percent bonds on July 1, Year 1, at 102. Interest is payable in cash semiannually on June 30 and December 31. The straight-line method is used for amortization. Exercise 10-15A Part a Required a. Prepare the journal entries to record issuing the bonds and any necessary journal entries for Year 1 and Year 2. Post the journal entries to T-accounts. Prepare any necessary closing entries for Year 1. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list X 1 Record the issue of bonds payable with premium. > 2 Record the interest expenses and amortization for bonds payable. 3 Record the closing entry for expenses. 4 Record the interest expenses and amortization for bonds payable. redit 5 Record the interest expenses and amortization for bonds payable. 6 Record the closing entry for expenses. Note : = journal entry has been entered Record entry Clear entry View general Journal Cash Premium on Bonds Payable Year 1 Year 1 0 End. Bal. 0 End. Bal. Year 2 Year 2 End. Bal. End. Bal. Bonds payable Year 1 End. Bal. 0 Retained Earnings Interest Expense Year 1 Year 1 End. Bal. End. Bal. 0 Year 2 Year 2 End. Bal. End. Bal. 0