Chowan Corporation issued $154,000 of 7% bonds dated January 1, 2019, for $148,815.79 on January 1, 2019. The bonds are due December 31, 2019, were issued to yield 8%, and pay interest semiannually on June 30 and December 31. Chowan uses the effective interest method of amortization. Required: Prepare the journal entries to record the issue of the bonds on January 1, 2019, and the interest payments on June 30, 2019, December 31, 2019, and June 30, 2020. In addition, prepare a bond interest expense and discount amortization schedule for the bonds through June 30, 2020. CHART OF ACCOUNTS Chowan Corporation General Ledger ASSETS REVENUE 111 Cash 411 Sales Revenue 121 Accounts Receivable 141 Inventory EXPENSES 152 Prepaid Insurance 500 Cost of Goods Sold 181 Equipment 511 Insurance Expense 198 Accumulated Depreciation 512 Utilities Expense 521 Salaries Expense 532 Bad Debt Expense LIABILITIES 211 Accounts Payable 540 Interest Expense 541 Depreciation Expense 231 Salaries Payable 250 Unearned Revenue 255 Bonds Payable 256 Premium on Bonds Payable 257 Discount on Bonds Payable 559 Miscellaneous Expenses 910 Income Tax Expense 261 Income Taxes Payable EQUITY 311 Common Stock 331 Retained Earnings Prepare the journal entries to record the issue of the bonds on January 1, 2019, and the interest payments on June 30, 2019, December 31, 2019, and June 30, 2020. General Journal Instructions PAGE 2019 PAGE 2020 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT Prepare a bond interest expense and discount amortization schedule for the bonds through June 30, 2020. Analysis Instruction CHOWAN CORPORATION Bond Interest Expense and Discount Amortization Schedule (Partial) Effective Interest Method 7% Bonds Sold to Yield 8% Date Cash Credit Interest Expense Debit Unamortized Discount Credit Book Value of Bonds 01/01/19 $ 6/30/19 12/31/19 6/30/20