Legacy issues $680,000 of 6.5%, four-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. They are issued at $645,669 and their market rate is 8% at the issue date. 4. Prepare the journal entries to record the first two interest payments. Answer is complete but not entirely correct. General Journal Debit Interest payable 25,827 X Credit Jun 30, 2017 Cash Discount on bonds payable 22.100 3,727 Dec 31, 2017 Interest payable 25,976 X I Cash 22.100