Chowan Corporation issued $83,000 of 6% bonds dated January 1, 2019, for $80,147.31 on January 1,...

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Chowan Corporation issued $83,000 of 6% bonds dated January 1, 2019, for $80,147.31 on January 1, 2019. The bonds are due December 31, 2022, were issued to yield 7%, and pay interest semiannually on June 30 and December 31. Chowan uses the effective interest method of amortization. Required: Prepare the journal entries to record the issue of the bonds on January 1, 2019, and the interest payments on June 30, 2019, December 31, 2019, and June 30, 2020. In addition, prepare a bond interest expense and discount amortization schedule for the bonds through June 30, 2020. GENERAL JOURNAL DATE ACCOUNT TITLE 1 Jan. 1, 2019 Cash 2 Discount on Bonds Payable 3 Bonds Payable 4 Jun. 30 Interest Expense 5 in Discount on Bonds Payable 6 Cash 7 Dec. 31 Interest Expense 8 Discount on Bonds Payable 9 Cash Score: 149/153 POST. REF. DEBIT CREDIT 80.147.31 2,852.69 83,000.00 2,805.15 315.16 2,490.00 2,816.19 236.19 2,490.00 CHOWAN CORPORATION Bond Interest Expense and Discount Amortization Schedule (Partial) Effective Interest Method 6% Bonds Sold to Yield 7% Date Cash Credit Interest Expense Debit Unamortized Discount Credit Book Value of Bonds 01/01/19 6/30/19 12/31/19 $0.00 X $0.00 X $2,852.69 X $80,147.31 $2,490.00 $2,805.16 $2,537.53 X $80,462.47 $2,490.00 6/30/20 $2,490.00 $2,816.19 $2,211.36 X $80,788.66 $2,827.60 $1,873.60 X $81,126.26 Chowan Corporation issued $83,000 of 6% bonds dated January 1, 2019, for $80,147.31 on January 1, 2019. The bonds are due December 31, 2022, were issued to yield 7%, and pay interest semiannually on June 30 and December 31. Chowan uses the effective interest method of amortization. Required: Prepare the journal entries to record the issue of the bonds on January 1, 2019, and the interest payments on June 30, 2019, December 31, 2019, and June 30, 2020. In addition, prepare a bond interest expense and discount amortization schedule for the bonds through June 30, 2020. GENERAL JOURNAL DATE ACCOUNT TITLE 1 Jan. 1, 2019 Cash 2 Discount on Bonds Payable 3 Bonds Payable 4 Jun. 30 Interest Expense 5 in Discount on Bonds Payable 6 Cash 7 Dec. 31 Interest Expense 8 Discount on Bonds Payable 9 Cash Score: 149/153 POST. REF. DEBIT CREDIT 80.147.31 2,852.69 83,000.00 2,805.15 315.16 2,490.00 2,816.19 236.19 2,490.00 CHOWAN CORPORATION Bond Interest Expense and Discount Amortization Schedule (Partial) Effective Interest Method 6% Bonds Sold to Yield 7% Date Cash Credit Interest Expense Debit Unamortized Discount Credit Book Value of Bonds 01/01/19 6/30/19 12/31/19 $0.00 X $0.00 X $2,852.69 X $80,147.31 $2,490.00 $2,805.16 $2,537.53 X $80,462.47 $2,490.00 6/30/20 $2,490.00 $2,816.19 $2,211.36 X $80,788.66 $2,827.60 $1,873.60 X $81,126.26