Bonds Payable Journal Entries; Effective Interest Amortization On December 31, 2009, Blair Company issued $800,000 of 20 year 1 1% bonds payable for $754,784 yielding an effective interest rate of 12% Interest is payable semiannually on une 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, 2010, and (c) the semiannual interest payment and discount amortization on December 31, 2010. Round amounts to the nearest dollar. General Journal Date Debit To record issuance of bonds b. Jun.30 Cash To record semiannual inerest payment and discount amortization Dec.31 Cash To record semianinual interest payment