Problem 14-5A Straight-Line: Amortization of bond premium and discount LO P1, P2, P3 [The following information applies to the questions displayed below.] Legacy issues $560,000 of 9.0%, four-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. They are issued at $507,831 and their market rate is 12% at the issue date. Problem 14-5A Part 4 4. Prepare the journal entries to record the first two interest payments.