Bonds Payable Journal Entries; Effective Interest Amortization On December 31, Daggett Company issued $700,000 of ten-year, 9% bonds payable for $650,323, yielding an effective interest rate of 10%. 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.

General Journal
Date	Description	Debit	Credit
a.)
Dec.31	Cash	Answer	Answer
	AnswerCashDiscount on Bonds PayableBonds PayableBond Interest Expense	Answer	Answer
	AnswerCashDiscount on Bonds PayableBonds PayableBond Interest Expense	Answer	Answer
	To record issuance of bonds.
b.)
Jun.30	AnswerCashDiscount on Bonds PayableBonds PayableBond Interest Expense	Answer	Answer
	AnswerCashDiscount on Bonds PayableBonds PayableBond Interest Expense	Answer	Answer
	Cash	Answer	Answer
	To record semiannual interest payment and discount amortization.
c.)
Dec.31	AnswerCashDiscount on Bonds PayableBonds PayableBond Interest Expense	Answer	Answer
	AnswerCashDiscount on Bonds PayableBonds PayableBond Interest Expense	Answer	Answer
	Cash	Answer	Answer
	To record semiannual interest payment.