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Prepare the journal entry to record the payment of interest

Question - On Jan.1st 2016 Company A issued 5 year bond with a future value of 600,000 and interest rate of 12% payable semiannually on June 30 and December 31. The prevailing rate of interest of this type of bond at the date of issue was 10%.

Prepare the journal entry to record the payment of interest on 12/31/2016 on Company A's books using the effective interest method of amortization of bond premium or discount?

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Accounting Basics: Prepare the journal entry to record the payment of interest

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