Stat Inc. issued a $500,000, 4 percent, 5-year bond payable at a price of 95 on January 1, 2020. Journalize the following transactions for Stat Inc. Include an explanation for each entry. Stat uses the straight-line method to amortize the bond discount.

a. Issuance of the bond payable on January 1, 2020.

b. Payment of semi-annual interest and amortization of bond discount on July 1, 2020.