Instructions Present entries to record the selected transactions described below: Required: a. Issued $2,750,000 of 10-year, 8% bonds at 97.* b. Amortized bond discount for a full year, using the straight-line method.* c. Called bonds at 98. Assume the bonds were carried at $2,692,250 at the time of the redemption.* *Refer to the Chart of Accounts for exact wording of account titles. > General Journal a. Issued $2,750,000 of 10-year, 8% bonds at 97 on January 1. Refer to the Chart of Accounts for exact wording of account titles. DESCRIPTION DATE 1 Jan. 1 Cash 2 Discount on Bonds Payable 3 Bonds Payable JOURNAL PAGE 1 ACCOUNTING EQUATION POST REF DEBIT CREDIT 2,667,500.00 ASSETS LIABILITIES EQUITY 82,500.00 2,750,000.00 Previous Next b. Amortized bond discount for a full year, using the straight-line method, on December 31. Refer to the Chart of Accounts for exact wording of account titles. JOURNAL DESCRIPTION DATE 1 Dec. 31 Interest Expense 2 Discount on Bonds Payable PAGE 1 ACCOUNTING EQUATION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 8,250.00 8,250.00 c. Called bonds at 98. Assume the bonds were carried at $2,692,250 at the time of the redemption on December 31. Refer to the Chart of Accounts for exact wording of account titles. DATE DESCRIPTION 1 Dec. 31 Bonds Payable 2 3 4 JOURNAL PAGE 1 ACCOUNTING EQUATION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 269,225.00