On July 1, Weems Corporation issued 6%, 25-year bonds with a face value of $105,000 for $66,641 because the current market rate is 10%. Record the following entries, assuming the interest method is used to amortize the discount on bonds. Round discount to the nearest dollar.
a. Issuance of bonds.
b. Semiannual interest payment on December 31 and amortization of discount.
c. Semiannual interest payment on June 30 and amortization of discount.

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a. Bond sinking fund b. Premium on 9% bonds c. Discount on 11% bonds d. 9% Bonds Payable e. 11% Bonds Payable $450,000 3,000 13,000 580,000 200,000