Bailey Co. sold 8-year, 6% $600,000 bonds at a price of 102 on January 1, 2021. Interest is paid each June 30 and December 31. Baileys fiscal year ends December 31.

Bailey Co. sold 8-year, 6% $600,000 bonds at a price of 102 on January 1, 2021. Interest is paid each June 30 and December 31. Bailey's fiscal year ends December 31. Required: Prepare journal entries for each of the following: a. Issuance of the bonds on January 1, 2021 b. Interest payment and bond discount amortization on June 30, 2021