Question: Hastings, Corp. issued 6%, five-year bonds payable with a maturity value of $5,000 at a price of $5,460 when the market rate was 4% on

Hastings, Corp. issued 6%, five-year bonds payable with a maturity value of $5,000 at a price of $5,460 when the market rate was 4% on January 1, 2014. Journalize the following transactions for Hastings, Corp. Include an explanation for each entry.

a. Issuance of the bonds payable on January 1, 2014.

b. Payment of semiannual interest and amortization of bond premium on July 1, 2014. (Use the effective interest method to amortize the premium.)

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