PAYMORE Company issued $380,000, 7%, 10-year bonds on January 1, N for $407,968. This price resulted in an effective-interest rate of 6% on the bonds. Interest is payable annually on January 1. PAYMORE uses the effectiveinterest method to amortize bond premium or discount.

V. PAYMORE Company issued $380,000,7%,10-year bonds on January 1,N for $407,968. This price resulted in an effective-interest rate of 6% on the bonds. Interest is payable annually on January 1. PAYMORE uses the effectiveinterest method to amortize bond premium or discount. Instructions: Prepare the journal entries (rounded to the nearest dollar) to record: (a) The issuance of the bonds. (b) The accrual of interest and the premium amortization on December 31,N. (c) The payment of interest on January 1,N+1. VI. Kymoana Co. receives $350,000 when it issues a $350,000,6%, mortgage note payable to finance the construction of a building at December 31,N. The terms provide for semi-annual installment payments of $17,856 on June 30 and December 31 . Instructions: Prepare the journal entries to record the mortgage loan and the first two instalment payments