Lon Corporation issued $1,000,000 of 9 percent bonds on October 1, 20x1, at 96. The bonds are dated October 1 and pay interest semiannually. The market interest rate is 10 percent, and Lon's fiscal year ends on December 31. Prepare the entries to record the issuance of the bonds, the accrual of the interest on December 31, 20x1, and the first semiannual interest payment on April 1, 20x2. Assume the company does not use reversing entries and uses the effective interest method to amortize the bond discount. E-1