Cleveland Company issued \(\$ 180,000,11 \%, 10\)-year bonds on January 1, 1996, for \(\$ 191,216\). This price resulted in an effective interest rate of \(10 \%\) on the bonds. Interest is payable semiannually on July 1 and January 1. Cleveland uses the effective-interest method to amortize bond premium or discount. Interest is not accrued on June 30 .

\section*{Instructions}

Prepare the journal entries (rounded to the nearest dollar) to record:

(a) The issuance of the bonds.

(b) The payment of interest and the premium amortization on July 1, 1996.

(c) The accrual of interest and the premium amortization on December 31, 1996.