entries to record the amortization when the effective interest melnu 15 4 Exercise 12-32 Bond Interest and Premium or Discount Amortization Assume that $140,000 of Denham Springs School District 8% bonds are sold on the bond issue date to $128,598. Interest is payable semiannually, and the bonds mature in 15 years. The purchase price provide a return of 9% on the investment. Exerci 1. What entries would be made on the investor's books for the receipt of the first two interest pay- ments, assuming premium or discount amortization on each interest date by (a) the straight-line method and (b) the effective interest method? (Note: Round to the nearest dollar.) 2. What entries would be made on Denham Springs School District's books to record the first two interest payments, assuming premium or discount amortization on each interest date by (a) the straight-line method and (b) the effective interest method? (Note: Round to the nearest dollar. 4 Gyorice 12.23 Discount and Premium Amortization