Surf Sisters Corp. issued a $400,000, 7 percent, 10-year bond payable at a price of 105 on

Question:

Surf Sisters Corp. issued a $400,000, 7 percent, 10-year bond payable at a price of 105 on January 1, 2017. Journalize the following transactions for Surf Sisters Corp. Include an explanation for each entry.
1. Issuance of the bond payable on January 1, 2017.
2. Payment of semi-annual interest and amortization of bond premium on July 1, 2017. Surf Sisters uses the straight-line method to amortize the premium.