E14-5 (LO1) Entries for Bond Transactions-Effective-Interest Celine Dion Company issued bonds on January 1, 2020. Interest is payable semiannually on July 1 and January 1. Dion Company uses the effective interest method of amortization for bond premium or discount. Pertinent information follows: Par value of bonds Stated interest rate Term Issue price Effective Interest rate $ 600,000 10% 20 years 102 9.7705% Instructions: Prepare the journal entries to record the following. (Round to the nearest dollar.) 5 (a) The issuance of the bonds. 5 B Jan. 1 9 . (b) The payment of interest and related amortization on July 1, 2020. 2 3 4 Jul. 1 5 6 7 8 Debit Credit Debit Credit 9 (c) The accrual of interest and the related amortization on December 31, 2020. O 1 2 3 4 -5 6 17 8 19 40 Debit Credit $1 Dec. 31 2 3 4 45 46 47