Bryan Company issued $$500,000$ of $1095$ face value bonds on January $1,2016$ for $$486,000,$ The bonds afe due on December $31,2018$ and pay semiannual interest on June $30$ and December $31.$ Bryan Company uses straight line amartization.

Prepare the joumal entry for when the bonds are initially issued, and the journal entries for the first two interest paymants.