Family General Stores Inc. is authorized to issue \(\$ 500,000\) of \(7 \%, 10\)-year bonds. On Record bond transactions and calculate interest using the effective-interest method December 31,2020 , when the market interest rate is \(8 \%\), the company issues \(\$ 400,000\) of the bonds and receives cash of \(\$ 372,660\). Family General amortizes bonds by the effective interest method. The semi-annual interest dates are January 31 and July 31.

{Requirements}

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

2. Record issuance of the bonds on December 31, 2020, and the semi-annual interest payments on January 31, 2021, and on July 31, 2021.