Windsor, Inc. issues $5.1 million, 10-year, 7% bonds at 102, with interest payable on January 1. The straight-line method is used to amortize bond premium.

Your answer is partially correct. Try again. Prepare the journal entry to record interest expense and bond premium amortization on December 31, 2017, assuming no previous accrual of interest. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Premium on Bonds Payable Interest Expense Interest Payable