Required information Exercise 10-15A Straight-line amortization of a bond premium LO 10-5 (The following information applies to the questions displayed below.) The Square Foot Grill, Inc. issued $200,000 of 10-year, 6 percent bonds on July 1, Year 1, at 102. Interest is payable in cash semiannually on June 30 and December 31. The straight-line method is used for amortization. Exercise 10-15A Part a Required a. Prepare the journal entries to record issuing the bonds and any necessary journal entries for Year 1 and Year 2. Post the journal entries to T-accounts. Prepare any necessary closing entries for Year 1. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 4 6 > Record the issue of bonds payable with premium. Note: Enter debits before credits. Date Credit Debit 204,000 Jul 01 General Journal Cash Premium on bonds payable Bonds payable (Select "cl" for all the closing entries.) Cash Premium on Bonds Payable Year 1 Year 1 12/31 7/1 12/31 7/1 End. Bal. Year 2 End. Bal. Year 2 cl cl cl 6/30 12/31 12/31 End. Bal End. Bal. Bonds payable Year 1 7/1 End. Bal. Retained Earnings Interest Expense Year 1 12/31 Year 1 12/31 End. Bal. Year 2 End. Bal. Year 2 cl cl 12/31 6/30 12/31 End. Bal. End. Bal