On January 1 of this year, Victor Corporation sold bonds with a face value of $1,410,000 and a coupon rate of 7 percent. The bonds mature in four years and pay interest semiannually every June 30 and December 31. Victor uses the straight-line amortization method and also uses a premium account. Assume an annual market rate of interest of 4 percent.

Journal entry worksheet Record the issuance of the bonds Note: Enter debits before credits. Date General Journal Debit Credit January 01 Cash Premium on bonds payable Bonds payable Record entry Clear entry View general journal Journal entry worksheet Record the interest payment on June 30, using straight-line amortization Note: Enter debits before credits. Date General Journal Debit Credit June 30 Record entry Clear entry View general journal 3. What bonds payable amount will Victor report on its June 30 balance sheet? VICTOR CORPORATION Balance Sheet (Partial) At June 30 Long-term liabilities 0