On December 31,2018,when the market interest rate is 16%, Benson Realty

issues $550,000 of 14.25%,10-year bonds payable. The bonds pay interest semiannually. The present value of the bonds at issuance is $502,993.

Requirements

1.	Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round to the nearest dollar.)
2.	Using the amortization table prepared in Requirement 1, journalize issuance of the bonds and the first two interest payments.