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Jan 1, 2019, issued $10,000,000 of 5% five-year convertible bonds for total proceeds of $10,900,000. Bonds pay interest each Dec 31.Total proceeds were allocated to

Jan 1, 2019, issued $10,000,000 of 5% five-year convertible bonds for total proceeds of $10,900,000. Bonds pay interest each Dec 31.Total proceeds were allocated to the liability account. Company has always amortized the premium using the straight-line basis. Amortization of premiums is a permanent difference for tax calculations. Explain the appropriate accounting policy with journal entries.

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