Journal Entries, Year 1 PAGE 15 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS LIABILITIES EQUITY Jan. 1 Cash 1,008,960.00 Premium on Bonds Payable 58,960.00 Bonds Payable 950,000.00 Jun. 30 Interest Expense 18,427.00 Premium on Bonds Payable 2948.00 Cash 21,375.00 Jul 1 Cash 1,921,280.00 Discount on Bonds Payable 78,720.00 Bonds Payable Interest Expense Premium on Bonds Payable 2,000,000.00 10 Dec. 31 18,427.00 2,948.00 12 Cash 21,375.00 13 31 Interest Expense 41,560.00 14 Discount on Bonds Payable 6,560.00 15 35,000.00 16 31 Income Summary 78,414.00 Interest Expense 78,414.00