E$13\mathrm{.}5($LO $1)$ Entries for Bond Transactions$-$Effective$-$Interest

Celine Dion Company issued bonds on January $1,2025.$ Interest is payable semiannually on July $1$

and January $1.$ Dion Company uses the effective interest method of amortization for bond

premium or discount. Pertinent information follows:

Instructions

Prepare the journal entries to record the following.

a$.$ The issuance of the bonds.

b$.$ The payment of interest and related amortization on July $1,2025.$

c$.$ The accrual of interest and the related amortization on December $31,2025.$

NOTE: Enter a formula, a cell reference, or a value $($if you are unable to reference a cell$),$

into the yellow shaded input cells.