Recording Bond Entries and Preparing an Amortization Schedule-Straight-Line Interest Method, Discount Mitchell Inc. issued 200 of its 6%, $1,000 bonds on January 1 of Year 1. The bonds pay cash interest semiannually each June 30 and December 31 and were issued to yield 7%. The bonds mature in three years on December 31, and the company will use the straight-line interest method to amortize the bond discount or premium. Assume that the difference between the effective interest method and the straight-line interest method is not material. Required a. Determine the selling price of the bonds. b. Prepare an amortization schedule for the first two years of the bond term. c. Prepare journal entries on the following dates. 1. January 1 of Year 1, bond issuance. 2. June 30 of Year 1, interest payment. 3. December 31 of Year 1, interest payment. Bond Selling Price Amortization Schedule Journal Entries