Exercise 10-16A Straight-line amortization for bonds issued at a discount LO 10-4 On January 1, Year 1, Price Co. issued $325,000 of five-year, 6 percent bonds at 95. 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 X 1 Record the entry for issuance of bonds. > 2 Record the entry for recognizing interest expense on Dec. 31, Year 1. 3 Record the entry for recognizing interest expense on Dec. 31, Year 2. Credit Note : = journal entry has been entered Record entry Clear entry View general journal