Magna Company issued $400,000, 6%, 15-year bonds on December

31, 2017

at 97.

Interest is payable annually on December 31. Magna

uses the straight-line method to amortize bond premium or discount

.

Instructions

Prepare the journal entries to record the following events.

(a)

The issuance of the bonds.

(b)

The payment of interest and the discount amortization on December

31, 2018.

(c)

The redemption of the bonds at maturity, assuming interest for the

last interest period has been paid and recorded.

prepare the stairght line method chart