Legacy issues $680,000 of 6.5%, four-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $645,669 when the market rate is 8%.

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

4. Prepare the journal entries to record the first two interest payments. No 1 Date June 30 Bond interest expense 2 December 31 Answer is complete but not entirely correct. General Journal Discount on bonds payable Cash Bond interest expense Discount on bonds payable Cash Debit 30,153 30,556 Credit 8,053 22,100 8,456 x 22,100