Take me to the text Trivial Corporation (with a December 31 year-end) issued $406,000, 7% bonds due in 6 years on May 1, 2018 Interest is paid semi-annually on November 1 and May 1 of each year. On the issuance date, the market rate of interest was 8%, resulting in a price of $386,950 for these bonds. Note: The premium/discount is amortized using the straight-line method. Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number. For transactions with more than one debit or credit, enter the accounts in alphabetical order. a) is this bond issued at a discount or at a premium?: Discount : Prepare the journal entry on May 1, 2018, to issue the bonds. Date Account Title and Explanation Debit Credit May 1 Cash 386950 Discount on Bonds Payable 19050 Bonds Payable 406000 issuance of bonds bi Deopare the journal entry on November 1, 2018, to record the first interest payment assuming the straight- line method for amortization of bond discount/premium is used Date Debit Credit Account Title and Explanation test Expense INONT 4060 4060 Discount on Bonds Payable Discount on Bonds Payable Payment of interest and amortization c) Prepare the adjusting entry on December 31, 2018 assuming the straight-line method for amortization of bond discount/premium is used. Date Account Title and Explanation Debit Credit Dec 31 Interest Expense Discount on Bonds Payable : Interest Payable Accrual of interest on bonds d) Show the balance sheet presentation of bonds payable and related accounts as at December 31, 2018 Bonds Payable, 7%, Due May 1, 2023 Add premium or subtract discount Total Long-Term Liabilities Check