On January 1, Year 1, Price Company issued $244,000 of five-year, 6 percent bonds at 95. 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.)

Journal entry worksheet Record the entry for recognizing interest expense on Dec. 31 , Year 2. Note: Enter debits before credits. Journal entry worksheet Record the entry for recognizing interest expense on Dec. 31 , Year 1. Note: Enter debits before credits. Journal entry worksheet Note: Enter debits before credits