On January 1, 2017, Nickle Entertainment Inc. purchased a 4%, $50,000 Imax bond for $46,490. Interest is to be paid semiannually each June 30 and December 31. Nickle Inc. is planning to hold the bond until maturity. Record the entries on January 1, 2017, and June 30, 2017, based on the partial amortization schedule shown below.

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Period Ending Jan. 1/17 June 30/17.. Dec. 31/17. Cash Interest Received $1,000 1,000 Period Interest Income $1,395 1,407 Discount Amort. $395 407 Unamortized Discount $3,510 3,115 2,708 Carrying Value $46,490 46,885 47,292