The long-term debt section of the Midwest Corporation’s balance sheet at the end of its fiscal year, December 31, 2009, is as follows:

Prepare entries in journal form relevant to the interest payments on July 1, 2010, December 31, 2010, and January 1, 2011. Assume a market interest rate of 10 percent.

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Long-term liabilities Bonds payable-8%, interest payable 1/1 and 7/1, due 12/31/16 Less unamortized bond discount $250,000 20,000 $230,000