Please use the information here and the attached spreadsheet for responses. Thank you!

On January 1, 2015, Starburst Company issued 10-year bonds with a face value of $500,000 at 102. The bonds carry a stated interest rate of 7%, with interest payable semi-annually on January 1 and July 1. Starburst uses the straight-line method of amortizing bond premium or discount.

1. Prepare the journal entry to record the issuance of the bonds.
2. Prepare the journal entry to record payment of interest on July 1, 2015.
3. Prepare the adjusting entry to record the accrual of interest on December 31, 2015.
4. Prepare the balance sheet presentation for the bond on 12/31/2015.
5. Prepare the balance sheet presentation for the bond on 12/31/2016.

Date Account Title 1/1/2015 Account to debit Account to credit Account to credit Debit Amount 7/1/2015 Account to debit Account to credit Account to debit Account to credit Amount 12/31/2015 Account to debit Account to credit Account to debit Account to credit Amount Amount Amount Starburst Corporation Balance Sheet (Partial) 31-Dec-15 Long Term Liabilities Bonds Payable Add: Premium on Bonds Payable Amount Amount Amount Starburst Corporation Balance Sheet (Partial) 31-Dec-16 Long Term Liabilities Bonds Payable Add: Premium on Bonds Payable Amount Amount Amount Credit Amount Amount Amount Amount Amount Amount