Question 5 Blue Electric sold 3,458,000, 10%, 10-year bonds on January 1, 2017. The bonds were dated January 1 and pay interest annually on January 1. Blue Electric uses the straight-line method to amortize bond premium or discount. The bonds were sold at 103. Assume the country allows the use of straight line amortization for bond premiums and discounts. (a) Your answer is correct. Prepare the journal entry to record the issuance of the bonds on January 1, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2017 TCash 3561740 Bonds Payable 3561740 (b) Prepare a bond premium amortization schedule for the first 4 interest periods. Annual Interest Periods Interest Expense to Be Recorded Interest to Be Paid Premium Amortization Bond Carrying Value Issue date 1 2 3 4 Recenin uction bila the Roint Potonti inatu