Innovative Component Inc. needed financing to build a new manufacturing plant. On June 30th, 2014, Innovative Component issued $2,300,000 of 8-year bonds with a 6% coupon rate (payments due on December 31st and June 30^th). The effective interest rate was 8%.

Required:

1. Prepare a bonds amortization table.
2. Use the financial statement effects template below to record the bond issue and Innovative Components first two interest payments.