Bats Corporation issued $800,000 of 12% face value bonds for $851,705.70. The bonds were dated and issued on April 1, 2016, are due March 31, 2020, and pay interest semiannually on September 30 and March 31. Bats sold the bonds to yield 10%.

Required:

1. How to make any adjusting entries for the end of the fiscal year, December 31, 2016, using the straight-line method of amortization.
2. How to make any adjusting entries for the end of the fiscal year, December 31, 2016, using the effective interest method of amortization.