On Jan 1, 2018, Ps credit union issued a 5%, 20 year bonds payable with face value of $200,000. These bonds pay interest on June 30 and December 31st. The issue price of the bond is 103.

a. Journalize the issuance of the bonds on January 1, 2018 Date Accounts and Explanation Debit Credit 2018 Jan 1 Cash 206,000 Premium on Bonds Payable Bonds Payable 6,000 200,000 Issued bonds at a premium. b. Journalize the payment of interest and amortization on June 30, 2018. Date Accounts and Explanation Debit Credit 2018 Jun 30 Interest Expense Premium on Bonds Payable Cash Paid semiannual interest and amortized premium More Info - a. Issuance of the bonds on January 1, 2018 b. Payment of interest and amortization on June 30, 2018 c. Payment of interest and amortization on December 31, 2018 d. Retirement of the bond at maturity on December 31, 2037, assuming the last interest payment has already been recorded. Print Done