Exercise 10-8 Straight-Line: Recording bond issuance and premium amortization LO P3 Wookie Company issues 7%, five-year bonds, on January 1 of this year, with a par value of $106,000 and semiannual interest payments (O) (1) (2) Semiannual Period-End January 1, issuance June 30, first payment December 31, second payment Unamortized Premium $8,231 7,408 6,585 Carrying Value $114,231 113,408 112,585 Use the above straight-line bond amortization table and prepare journal entries for the following: (a) The issuance of bonds on January 1 (b) The first interest payment on June 30 (c) The second interest payment on December 31. View transaction list View journal entry worksheet No Date Debit Credit January 01 114,231 General Journal Cash Premium on bonds payable Bonds payable 8.231 106,000 June 30 Bond interest expense Premium on bonds payable Cash 2.887 823 3.710 December 31 Bond interest expense Premium on bonds payable