Selected transactions completed by XYZ Co. during the fiscal year ended December 31, 2021. Recreate the Journal entries that were created for the transactions.

Journalize the transactions.

01/02/2021 - Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually.

520,000 1/2/2021 Cash Premium on bonds payable Bonds payable 20,000 500,000 6/30/2021 Interest Expense Premium on Bonds Payable Cash 11,500 1,000 12,500 12/31/2021 Interest Expense Premium on Bonds Payable Cash 11,500 1,000 12,500