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issued five-year bonds with a face amount of $500 (non-amortizing debt). The bonds pay interest semiannually on June 30 and December 31 at a stated

issued five-year bonds with a face amount of $500 (non-amortizing debt). The bonds pay interest semiannually on June 30 and December 31 at a stated interest rate of 6%. The bonds were sold for $595 in proceeds, net of issue costs, to yield 2% (i.e., the discount rate is 2%). Record the journal entries for first interest payment on June 30.

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