A company issued $12\%,5-$year bonds with a par value of $$2,160,000,$ on January $1.$ Interest is to be paid semiannually each June $30$ and December $312005.$ The bonds were sold at $$2,306,290$ based on an annual market rate of $10\%.$ The company uses the effective interest method of amortization.

Require:

Prepare an amortization table for the first two semiannual payment periods using the format shown below.

Prepare the journal entry to record the first semiannual interest payment.