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Exercise 10-16A Straight-line amortization for bonds issued at a discount LO 10-4 On January 1, Year 1, Price Co. issued $312,000 of five-year, 8 percent bonds at 99. Interest is payable annually on December 31. The discount is amortized using the straight-line method. Required Prepare the journal entries to record the bond transactions for Year 1 and Year 2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is not complete. No Date General Journal Debit Credit 1 Jan 01 Discount on bonds payable Cash 2 Dec 31 Interest expense Cash 3 Dec 31 Interest expense Cash