On February 1, Clayton Co. issued $1,300,000 of 20-year, 9% bonds for $1,225,000. Interest is payable semiannually on February 1 and August 1. Present the entries to record the following transactions.(a)Issuance of the bonds.(b)First semiannual interest payment (record as separate entry from premium amortization).(c)Amortization of bond discount for the year, using the straight-line method of amortization. (Round to the nearest dollar when necessary.)

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The Answer of On February 1, Clayton Co. issued $1,300,000 of 20-year, 9% bonds for $1,225,000. Interest is payable semiannually on February 1 and August 1. Present the entries to record the following transactions.(a)Issuance of the bonds.(b)First semiannual interest payment (record as separate entry from premium amortization).(c)Amortization of bond discount for the year, using the straight-line method of amortization. (Round to the nearest dollar when necessary.)