On October 1, 2016, Ball Company issued 10% bonds dated October 1, 2016, with a face amount of $350,000. The bonds mature in 8 years. Interest is paid semiannually on March 31 and September 30. The proceeds from the bond issuance were $355,751.07 to yield 9.70%. Ball Company has a December 31 fiscal year-end and does not use reversing entries.

Required:

1.	Prepare journal entries to record the issuance of the bonds and the interest payments for 2016 and 2017 using the effective interest method.
2.	Prepare journal entries to record the issuance of the bonds and the interest payments for 2016 and 2017 using the straight-line method.

PAULI GENERAL JOURNAL Score: 181/198 ACCOUNT TITLE POST. REF. CREDIT DATE Oct. 1, 2016 Cash DEBIT 355,751.07 Bonds Payable Premium on Bonds Payable 350,000.00 5,751.07 Dec. 31, 2016 Interest Expense 8,626.96 123.04 Premium on Bonds Payable Interest Payable 8,750.00 Mar. 31, 2017 Interest Expense 8,626.96 8,750.00 Interest Payable Premium on Bonds Payable 123.04 Cash 17,500.00 Sep. 30, 2017" Premium on Bonds Payable 5,505.07 5,505.07 Interest Expense 5,505.07 Cash 17,500.00 Sep. 30, 2017 Interest Expense 17,242.00 Interest Payable 258.00 5.00 Premium on Bonds Payable 17,500.00 Prepare journal entries to record the issuance of the bonds and the interest payments for 2016 and 2017 using the straight-line method. Additional Instructions How does grading work? PAGE 1 GENERAL JOURNAL Score: 118/198 DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT Cash Bonds Payable Premium on Bonds Payable Interest Expense Premium on Bonds Payable Interest Payable Interest Expense Interest Payable Premium on Bonds Payable Cash Interest Expense Premium on Bonds Payable Interest Expense Interest Payable Premium on Bonds Payable Cash