Bonds Payable Journal Entries; Effective Interest Amortization On December 31, Blair Company issued $600,000 of 20-year, 11 percent bonds payable for $554,861, yielding an effective interest rate of 12 percent. Interest is payable semiannually on June 30 and December 31. Prepare journal entries to reflect (a) the issuance of the bonds, (b) the semiannual interest payment and discount amortization (effective interest method) on June 30, and (c) the semiannual interest payment and discount amortization on December 31. Round amounts to the nearest dollar. Date a.) Dec.31 Cash b.) Jun.30 C.) Dec.31 General Journal Description To record issuance of bonds. Cash To record semiannual interest payment and discount amortization. Cash To record semiannual interest payment. Debit $ Credit