Legacy issues $640,000 of 8.5%, four-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. They are issued at $570,443 and their market rate is 12% at the issue date.

3. Prepare a straight-line amortization table for the bonds' first two years.

Semiannual Period-End	Unamortized Discount	Carrying Value
01/01/2017
06/30/2017
12/31/2017
06/30/2018
12/31/2018

4. Prepare the journal entries to record the first two interest payments

Record the interest payment and amortization on June 30, 2017.

Record the interest payment and amortization on December 31, 2017.