Exercise 10-16A (Algo) Straight-line amortization for bonds issued at a discount LO 10-4 On January 1, Year 1, Price Company issued $185,000 of five-year, 4 percent bonds at 96 . Interest is payable annualiy on December 31. The discount is amortized using the straight-line method. Required Prepare the journal entries to record the bond transactions for Year 1 and Year 2 . (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Journal entry worksheet Record the entry for recognizing intirest expense on Dec, 31, Year 1. Note: Enter debits before credits: select "No journal entry required" in the first account field.) Journal entry worksheet Record the entry for issuance of bonds. Note: Enter debits before credits. Journal entry worksheet Record the entry for recognizing interest expense on Dec. 31, Year 2. Note: Enter debits before credits