Using each company records and going through a thorough transactional analysis, you are now recording all of the transactions that should have been previously recorded, when they originally occurred.

Please Prepare a Journal entry for the following:

Petrol Corporation, a pharmaceutical manufacturing company located in the Toms River industrial park is looking to expand its production capabilities. CEO, Shiver Jackson presented a capitalization plan to the Companys Board of Directors to issue Corporate Bonds to fund a building expansion and the purchase of several pieces o f new equipment for the production capacity expansion initiative. The Board authorized the issuance of bonds dated January 1, 2021, with a par value of $770,000. The bonds' annual contract rate is 12%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 10%, and the bonds are sold for $809,071.

As the Accountant for the Company, you have been asked to (1) Determine the amount of the premium on these bonds at issuance, (2) Determine the total bond interest expense to be recognized over the life of these bonds, (3) Use the straight-line method to amortize the premium for these bonds and (4)

Prepare a draft of all of the journal entries related to these bonds over the full life of the Bonds.