On May 1, 201X, Lester Corporation issued $600,000 of 12%, 20-year bonds at 107. The interest is payable on November 1 and May 1. The premium is amortized by the straight-line method. Prepare an amortization schedule for the first three semiannual periods and journalize the following transactions:
May 1 Bonds issued.
Nov. 1 Paid semiannual interest and amortized premium.
Dec. 31 Accrued bond interest and amortized premium.