Solecki Corporation assembles and distributes fans. Solecki Corporation sold $4,000,000 five-year, 8% bonds on January 1, 2011. The bonds pay interest on June 30 and December 31 and were issued at an effective interest rate of 7%, resulting in Solecki Corporation receiving cash of $4,166,332. Solecki Corporation is a privately held company and has chosen to use the straight-line method of amortization.
Journalize the entries to record the following:
1. Sale of the bonds on January 1, 2011.
2. First semiannual interest payment and premium amortization.
3. Final semiannual interest payment and premium amortization on December 31, 2015.
4. Maturity of the bond on December 31, 2015.