Response to the following problem:
Autorama Corp. is authorized to issue 7%, 10-year bonds payable. On January 2, 20X4 when the market interest rate is 8%, the company issues $300,000 of the bonds and receives cash of $279,600. Autorama amoritzes bond discount by the effective-interest method. Interest dates are January 2 and July 2.
Required:
1. Prepare an amortization table for the first two semiannual interest periods.
2. Record issuance of the bonds payable and the first semiannual interest payment on July 2.