Klingler Co. is authorized to issue \(\$ 500,000\) of 7 -percent, 10 -year bonds payable. On January 2, when the market interest rate is 8 percent, the company issues \(\$ 400,000\) of the bonds and receives cash of \(\$ 372,660\). Klingler amortizes bond discount by the effective-interest method,

\section*{Required}

1. Prepare an amortization table for the first four semiannual interest periods. Follow the format of Exhibit 16-5, Panel B.

2. Record the first semiannual interest payment on June 30 and the second payment on December 31 .