Coffman Company sold bonds with a face value of $1,000,000 for $961,391. The bonds have a coupon rate of 9 percent, mature in 5 years, and pay interest semiannually every June 30 and December 31.

All of the bonds were sold on January 1 of this year. Using a discount account, record the sale of the bonds on January 1 and the payment of interest on June 30 of this year. Coffman uses the effective-interest amortization method. Assume an annual market rate of interest of 10 percent. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round final answers to nearest whole dollar.)

(General Journal options:

• No journal entry required
• Bonds payable
• Cash
• Discount on bonds payable
• Interest expense
• Interest revenue
• Loss on bond call
• Premium on bonds payable
• Rent revenue)