A company issued 10%, 10-year bonds with a par value of $1,000,000 on January 1, 2009 at a selling price of $885,295, to yield the buyers a 12% return. The company uses the effective interest amortization method. Interest is paid semiannually each June 30 and December 31.
Required
1. Refer to Appendix B on page 573 and prepare an amortization table for the first two payment periods.
2. Prepare the journal entry to record the first semiannual interest payment and amortization