Grande Latte company issues 2-year, $400,000 face value bonds on January 1, 2022. The bonds have an annual coupon rate of 8%, paid semiannually on June 30 and December 31. The annual market interest rate is 6.5%.

Record the journal entry that Grande should make on January 1, 2022 to recognize the sale of the bonds.

2. Complete the following amortization table for the related to the Grande bonds:

Date	Coupon Payment	Interest Expense	Amortization of Premium or Discount	Bond Net Book Value
1/1/2022
6/30/2022
12/31/2022
6/30/2023
12/31/2023

3. Record the journal entry that Grande would make on 12/31/2022 related to this bond.