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Prepare Journal Entries for the following The 6%, $400,000 20-year bonds were dated January 1, 2016, and were sold on May 31 at 102 plus

Prepare Journal Entries for the following

The 6%, $400,000 20-year bonds were dated January 1, 2016, and were sold on May 31 at 102 plus accrued interest. Interest is payable semiannually on June 30 and December 31.

Expense of issuance was $1,200. The company uses straight-line amortization for bond interest. The balance sheet records an increase to premium on bonds payable of 7,762 and a decrease of bond discounts and issue costs of 4,910

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