Love Corporation sold $2,000,000, 6%, 10-year bonds on January 1, 2010. The bonds were dated January 1, 2010, and pay interest on January 1. Love Corporation uses the straight-line method to amortize bond premium or discount. Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2010, assuming that the bonds sold at 103. Jan.1 Debit Cash = 2,060,000 Credit Bonds Payable = 2,000,000 Credit Premium on B/p = 60,000 Dec. 31 Debit Bond Interest Expense Debit Premium on B/P Credit Bond Interest Payable Prepare journal entries as in the question above assuming that the bonds sold at 98. Show the balance sheet presentation for the bond issue at December 31, 2010, using (1) the 103 selling price, and then (2) the 98 selling price. 1 Current Liabilities: Long Term Liabilities: 2 Current: Long-term: Bonds Payable due 2020 = 2,000,000 Less: Discount on Bonds Payable = 40,000