Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018, and received $540,000. Interest is payable semi-annually. The premium is amortized using the straightline method. Prepare journal entries for the following transactions.
A. July 1, 2018: entry to record issuing the bonds
B. Dec. 31, 2018: entry to record payment of interest to bondholders
C. Dec. 31, 2018: entry to record amortization of premium