Clarke Corporation issued $ 800,000 of 12 %, 10 -year bonds payable on January 1, 2019. The market interest rate at the date of issuance was 10 %, and the bonds pay interest semiannually (on June 30 and December 31). Clarke Corporation's year-end is June 30.

3. Record Clarke Corp's issuance of the bonds on March 31, 2019 , and payment of the first semiannual interest amount and amortization of the bond discount on September 30, 2019. (Record debits first, then credits. Exclude explanations from any journal entries.)

2. Prepare an effective-interest amortization table for the bond through the first three interest payments. Round amounts to the nearest dollar. Discount Account Balance Bond Carrying Amount nterest Semiannual nterest Date Mar 31, 2019 Sep 30, 2019 Mar 31, 2020 Sep 30, 2020 Interest Discount Payment Expense Amortization Journal Entry Date Accounts Debit Credit Mar 31 Cash Discount on Bonds Payable Bonds Payable Now record the payment of the first semiannual interest amount and amortization of the bond discount on September 30, 2019. Journal Entry Date Accounts Debit Credit Sep 30 Interest Expense Discount on Bonds Payable Cash