711 Chapter 14 Long-Term Liabilities: Bonds and Notes 6. On August 1, Clayton Co. issued $1,300,000 of 20-year, 9% bonds, dated August 1, for S1. 25.000. Interest is payable semiannually on February 1 and August 1. Present the entries to record the following transactions for the current year (a) (b) Issuance of the bonds. Accrual of interest and amortization of bond discount for the year, on Decem the straight-line method. ber 31, using On the first day ofthe current fiscal year, $1,000,000 of 10-year, 7% bonds, with interes semiannually, were sold for $1,050,000. Present entries to record the following transa current fiscal year: a) Issuance ofthe bonds. b) First semiannual interest payment. Amortization of bond premium for the year, using the straight-ine mehc