Problem 14-5A Straight-Line: Amortization of bond premium and discount LO P1, P2, P3

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Legacy issues $620,000 of 9.5%, four-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. They are issued at $571,867 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.

Record the interest payment and amortization on June 30,2017.

Record the interest payment and amortization on December 31, 2017