Required information Problem 10-5A Straight-Line: Amortization of bond premium and discount LO P1, P2, P3 [The following information applies to the questions displayed below.] Legacy issues $570,000 of 8.5%, four-year bonds dated January 1, 2018, that pay interest semiannually on June 30 and December 31. They are issued at $508,050, and their market rate is 12% at the issue date. Problem 10-5A Part 1 Required: 1. Prepare the January 1, 2018, journal entry to record the bonds' issuance. Record the issue of bonds with a par value of $570,000 cash on January 1, 2018 at an issue price of $508,050. 4. Prepare the journal entries to record the first two interest payments. Record the interest payment and amortization on June 30, 2018. Record the interest payment and amortization on December 31, 2018.