QUESTION 5 On September 1, 2015, Evansville 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 fiscal year ends at December 31. Instructions a-1. Prepare the necessary adjusting entries at December 31, 2015, and the journal entry to record the payment of bond interest on March 1, 2016, under the bonds were issued at 98: Date General Journal Debit 31-Dec-15 Bond interest expense Discount on bonds payable Bond interest payable 1-Mar-16 Bond interest payable Bond interest expense Discount on bonds payable Cash a-2. Prepare the necessary adjusting entries at December 31, 2015, and the journal entry to record the payment of bond interest on March 1, 2016, under the bonds were issued at 101: Date General Journal Debit 31-Dec-15 Bond interest expense Premium on bonds payable Bond interest payable 1-Mar-16 Bond interest payable Bond interest expense Premium on bonds payable Cash b. Compute the net bond liability at December 31, 2016, under assumptions a-1 and a-2 above Net Bond Liability Bonds Issued at 98