Donds Payable journal Entries; 5traight-Line Interest Amortization On December 31, Arown Company issued 5750,000 of 20year, eght percent bonds payable for 5621,307 , yelding an effective interest rate of ten percent. Interest is payable semiannualiy on fune 30 and December 31. Prepare journal entries to teffect (a) the bscance of the bonds, (b) the semiannual interest payment and discount amortization (straight-fine interest method) on june 30 , and (c) the semiannual interes payment and discount amortization on December: 31