\begin{tabular}{|l|c|} \hline & DENZEL CORPORATION \\ \hline & Balance Sheet (Partial) \\ \hline Long-term liabilities & At June 30 \\ \hline & \\ \hline & \\ \hline \end{tabular} E10-8 (Algo) Recording and Reporting a Bond Issued at a Discount (with Discount Account) LO10-4 Denzel Corporation is planning to issue bonds with a face value of $670,000 and a coupon rate of 75 percent. The bonds mature in 6 jears and pay interest semiannually every June 30 and December 31 . All of the bonds were sold on January 1 of this year. Denzel use he effective-interest amortization method and also uses a discount account. Assume an annual market rate of interest of 85 percent FV of $1. PV of $1. FVA of $1, and PVA of $1 ) Note: Use appropriate factor(s) from the tables provided. Required: 1. and 2. Prepare the journal entries to record the issuance of the bonds and interest payment on June 30 of this year. 3. What bonds payable amount will Denzel report on its June 30 balance sheet