Answer:
1) June 30, 2020, bonds are issued at a premium
Dr Cash 3,842,540
Cr Bonds payable 3,340,000
Cr Premium on bonds payable 502,540
2) December 31, 2020, first coupon payment
Dr Interest expense 230,552.40
Dr Premium on bonds payable 3,247.60
Cr Cash 233,800
amortization of bond premium = ($3,842,540 x 6%) - $233,800 = -$3,247.60
3) June 30, 2021, second coupon payment
Dr Interest expense 230,357.54
Dr Premium on bonds payable 3,442.46
Cr Cash 233,800
amortization of bond premium = ($3,839,292.40 x 6%) - $233,800 = -$3,442.46
4) December 31, 2021, third coupon payment
Dr Interest expense 230,151
Dr Premium on bonds payable 3,649
Cr Cash 233,800
amortization of bond premium = ($3,835,849.94 x 6%) - $233,800 = -$3,649
