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On January 1, Year 1, Twain Corp. sold $600,000 of its own 5 percent, 10-year bonds. Interest is payable annually on December 31. The bonds were sold to yield an effective interest rate of 6 percent. Twain uses the effective interest rate method. The bonds sold for $555,840. Required a. Prepare the journal entry for the issuance of the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest dollar amount.) View transaction list View journal entry worksheet Credit No Date General Journal Debit Jan 01 Cash Premium on bonds payable Bonds payable ....... c. Prepare the journal entry for the amortization of the bond discount and the payment of interest on December 31, Year 1. (Assume straight-line amortization.) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest dollar amount.) View transaction list Journal entry worksheet Record the entry for the amortization of the bond discount and the payment of interest on December 31, Year 1. Note: Enter debits before credits. Credit Date General Journal Debit Dec 31 Record entry Clear entry View general journal d. Calculate the amount of interest expense for Year 2. (Assume effective interest amortization.) (Round your intermediate calculations and final answer to the nearest dollar amount.) Amount of interest expense for Year 2 e. Calculate the amount of interest expense for Year 2. (Assume straight-line amortization.) (Round your answer to the nearest dollar amount.) Amount of interest expense for Year 2

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