E9-43B. (Learning Objective 2: Issuing bonds payable [premium]; recording interest accrual and payment and the related bond amortization) On June 30, 20X0, the market interest rate is 9%. Team Sports Ltd. issues €3,400,000 of 10%, 10-year bonds payable. The bonds pay interest on June 30 and December 31. Team Sports Ltd. amortizes bonds by the effective-interest method.

Requirements 1. Prepare a bond amortization table for the first four semi-annual interest periods.

2. Record the issuance of bonds payable on June 30, 20X0, the payment of interest on December 31, 20X0, and the payment of interest on June 30, 20X1.