Bonds Payable journal Entries: Effective Interest Amortization On December 31, 2014 Daggett rate of twelve percent. interest is payable semiannually on June 30 and December 31 bonds, (b) the semiannual interest payment and discount amortization (effective interest method) on june interest payment and discount amortization on December 31.2015. Round a Company issued $800,000 of ten-year, nine percent bonds payable for $662.361. yielding an effective interest . Prepare journal entries to reflect (a) the issuance of the 30, 2015, and (c) the semiannual mounts to the nearest dollar General Journal Date Description Debit Credit Dec 31 Cash To record issuance of bonds