BONDS ISSUED AT A PREMIUM Velez Entertainment Co. issued the

BONDS ISSUED AT A PREMIUM Velez Entertainment Co. issued the following bonds at a premium:

Date of issue and sale: .........April 1, 20-1

Principal amount: ...........$500,000

Sale price of bonds: ..........104

Denomination of bonds: .........$1,000

Life of bonds: ..............20 years

Stated rate: .............10%, payable semiannually on

..................September 30 and March 31

Prepare journal entries for:

(a) Issuance of the bonds at a premium.

(b) Interest payment and premium amortization on the bonds on September 30.

(c) Year-end adjustment on the bonds.