25. On April 1, 2020, Mitchell Inc. issued 20, 6%, $1,000 bonds dated April 1, 2020 for $18,378. The bonds pay cash interest semiannually each June 30, and December 31, and were issued to yield 8%. The bonds mature March 31, 2025, and the company uses the effective interest method to amortize bond discounts or premiums. The partial amortization schedule is as follows:

Amortization schedule

		Cash Interest	Effective Interest	Discount amortization	Outstanding Balance
0	04/01/20				$18,378
1	09/30/20	$600	$735	$135	18,513
2	03/31/21	600	741	141	18,653

Prepare journal entries on the following dates. Round to the nearest dollar.

1. April 1, 2020 bond issuance
2. September 20,2020, interest payment
3. December 31, 2020 adjusting entry