On January 1, Year 1, Price Company issued $140,000 of five-year, 7 percent bonds at 97. Interest is payable annually on December 31. The discount is amortized using the straight-line method.

Record the entry for issuance of bonds. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01 Record the entry for recognizing interest expense on Dec. 31, Year 1. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record the entry for recognizing interest expense on Dec. 31, Year 2. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31