PAS. LO 13.3 Volunteer Inc, issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received S540,000. Interest is payable annually. The premium is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. June 30, 2019: entry to record payment of interest to bondholders c June 30, 2019: entry to record amortization of premium D. June 30, 2020: entry to record payment of interest to bondholders E. June 30, 2020: entry to record amortization of premium Solution Jul. 1. 2018 Cash Bonds Payable Premium on Bonds Pavable . Jun 30, 2019 Interest Expense C. Jun 30, 2019 Premium on Bonds Payable Interest Expense D. Jun 30, 2020 Interest Expense C Jun 30, 2020 Premium on Bonds Payable Interest Expense PA6. LO 13.3 Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018, and received $540,000. Interest is payable semi-annually. The premium is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders c Dec 31, 2018: entry to record amortization of premium Solution Dul. 1 Cash Bonds Payable Premium on Bonds Pavable Dec. 31 Interest Expense Cash Dec 31 Premium on Bonds Payable Interest Expense