Legacy issues $710,000 of 8.0%, four-year bonds dated January 1, 2013, that pay interest semiannually on June 30 and December 31. They are issued at $621,812 and their market rate is 12% at the issue date.

1. Prepare the January 1, 2013, journal entry to record the bonds' issuance.

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

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