On June 30, 2012, the market interest rate is 8%. First Place Sports Ltd. issues $4,000,000 of 9%, 20-year bonds payable at a price of 109.895. The bonds pay interest on June 30 and December 31. First Place Sports Ltd. Amortizes bonds by the effective-interest method.

Requirements
1. Prepare a bond amortization table for the first four semiannual interest periods.
2. Record the issuance of bonds payable on June 30, 2012; the payment of interest on December 31, 2012; and the payment of interest on June 30, 2013.