E9-24A. (Learning Objective 2: Issuing bonds payable [premium]; paying and accruing interest; amortizing the bonds by the effective interest method) On January 31, Driftwood Logistics, Inc., issued 10-year, 6% bonds payable with a face value of $15,000,000. The bonds were issued when the market rate was 5% and pay interest on January 31 and July 31. Driftwood Logistics, Inc., amortizes bonds by the effective interest method.

Requirements 1. Record issuance of the bonds on January 31.
2. Record the semi-annual interest payment and amortization of bond discount on July 31.
3. Record the interest accrual and discount amortization on December 31.