On January $1,$ Year $1,$ Price Company issued $$248,000$ of five$-$year, $6$ percent bonds at $97.$ 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 $1.$

Note: Enter debits before credits.