Newark Company issued bonds with a face value of $600,000 for a price of $580,610 on January 1, 2016. The bonds mature in 4 years and have a coupon rate of 9 percent, paid semiannually every June 30 and December 31. The market interest rate on the issuance date was 10%. (Round your final answers to whole dollars.) Required:

1. Prepare the journal entries to record the issuance of the bonds on January 1, 2016.

2. Prepare the journal entries to record the interest payment on June 30, 2016. Newark uses the effective-interest amortization method.

3. What bonds payable amount should Newark report on its balance sheet as of June 30, 2016?