Recording Bonds Issued at a Premium Straight-Line

Yale Corporation issued to Zap Corporation $60,000, 8% (cash interest payable semiannually on June 30 and December 31) 10-year bonds dated and sold on January 1, 2020. Assume that the company uses the straight-line amortization method. If the bonds were sold at 103, provide journal entries to be made at each of the following dates.

a. January 1, 2020, for issuance of bonds. b. March 31, 2020, for accrual of interest for quarterly reporting. c. June 30, 2020, for interest payment.