On September 30, 1995, the market interest rate is 7 percent. Staedtner, Inc., issues \(\$ 300,000\) of 8 -percent, 20 -year bonds payable at \(1105 / 8\). The bonds pay interest on March 31 and September 30 . Staedtner amortizes bond premium by the effective-interest method.

\section*{Required}

1. Prepare an amortization table for the first four semiannual interest periods. Follow the format of Exhibit 16-6, Panel B.

2. Record issuance of the bonds on September 30, 1995, the accrual of interest at December 31, 1995, and the semiannual interest payment on March 31, 1996.