Problem 10.6A Amortization of a Bond Discount and Premium L.O. 5, 6 On September 1, 2013, Park Rapids Lumber Company issued $80 million in 20-year, 10 percent bonds payable. Interest is payable semiannually on March 1 and September 1. Bond discounts and premiums are amortized at each interest payment date and at year-end. The company's financial year ends at December 31. a.1 Prepare the necessary adjusting entries at December 31, 2013, and the journal entry to record the payment of bond interest on March 1, 2014, under the bonds were issued at 98 (Do not round intermediate calculations and round your final answers to nearest dollar amount. Omit the "$" sign in your response): Date Debit Credit General Journal Dec. 31, 2013 (Click to select) (Click to select) (Click to select) Mar 1, 2014 (Click to select) (Click to select) (Click to select) (Click to select) a.2 Prepare the necessary adjusting entries at December 31, 2013, and the journal entry to record the payment of bond interest on March 1, 2014, under the bonds were issued at 101 (Do not round intermediate calculations and round your final answers to nearest dollar amount. Omit the "$" sign in your response): Date Dec. 31, 2013 General Journal (Click to select) (Click to select) (Click to select) Mar 1, 2014 (Click to select) (Click to select) (Click to select) (Click to select) Debit Credit b. Compute the net bond liability at December 31, 2014, under assumptions 1 and 2 above. (Round intermediate calculations and final answers to the nearest dollar amount. Omit the "$" sign in your response): Net bond liability Bonds Issued at 98 $ Bonds Issued at 101 $