Ellis issues 6.5%, five year bonds dated January 1, 2013, with a $250,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $255,333. The annual market rate is 6% on the issue date. What is the journal entry on issue date every 6 months and on matured date?
| Date | Accounts | Debit | Credit |
| Jan 1, 2013 | cash | 255333 | |
| Premium on bonds payable | 5333 | ||
| Bonds payable | 250000 | ||
| June 30 | interest expense (255333*6%*6/12) | 7660 | |
| Premium on bonds payable | 465 | ||
| Cash (250000*6.5%*6/12) | 8125 | ||
| Dec 31 2017 | bonds payable | 250000 | |
| Cash | 250000 | ||
Ellis issues 6.5%, five year bonds dated January 1, 2013, with a $250,000 par value. The...