(Learning Objectives 2: Issuing bonds payable (discount); recording interest payments and the related bond amortization) First Place Sports Ltd. is authorized to issue €1,000,000 of 9%, 10-year bonds payable. On December 31, 20X0, when the market interest rate is 10%, the company issues €800,000 of the bonds. First Place Sports amortizes bonds by the effective-interest method. The semi-annual interest dates are June 30 and December 31.

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

2. Record issuance of the bonds payable on December 31, 20X0, the fi rst semi-annual interest payment on June 30, 20X1, and the second payment on December 31, 20X1.