Exercise 10-16A Straight-line amortization for bonds issued at a discount LO 10-4 On January 1, Year 1. Price Co. Issued $190,000 of five-year, 6 percent bonds at 96 7. Interest is payable annually 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.) View transaction list Journal entry worksheet