On January 1, 2023, Nickle Entertainment Inc. purchased a 4%, $50,000 Imax bond for $46,490 (including transaction fees of $50). Interest is to be paid semiannually each June 30 and December 31. Nickle Inc. is planning to hold the bond until maturity. Record the entries on January 1, 2023, and June 30, 2023, based on the partial amortization schedule shown below.

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Period Ending Cash Interest Received Period Interest Income Discount Amort. Unamortized Discount Carrying Value Jan. 1/23 June 30/23 Dec. 31/23 $1,000 1,000 $1,395 1,407 $395 407 $3,510 3,115 2,708 $46,490 46,885 47,292