Bianca Corporation issued $16,000,000 in 8.5 percent, five-year bonds on March 1, 20x7, at 96. The semiannual interest payment dates are September 1 and March 1. Prepare entries in journal form for the issue of the bonds by Bianca on March 1, 20x7, and the first two interest payments on September 1, 20x7, and March 1, 20x8. Use the straight-line method and ignore year-end accruals.

Effective Interest Method