On June 30, 2012, the market interest rate is 7%.

On June 30, 2012, the market interest rate is 7%. Victory Sports Ltd. issues $1,600,000 of 8%, 25-year bonds payable at a price of 111.75. The bonds pay interest on June 30 and December 31. Victory 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.

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