First day of fiscal year, 2,000,000 of 10 year, 7% bonds, with interest payable annually, were sold for 2,125,000.

1-Entry for issuance of the bonds
2-first annual interest payment
3-amortization of bond premium for the year, using the straight-line method of amort.

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on august 1, St. Co. issued 1,300,000 of 20 year, 9% bonds dated august 1, for 1,225,000. Interest is payable semiannually on feb.1 and aug.1.

1-Entry on issuance of bonds
2-accrual interest and amortization of bond discount for the year, on dec.31, using straight-line method.

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