On January 1, 2014, Park Corporation sold a $615,000, 4 percent bond issue (6 percent market rate). The bonds were dated January 1, 2014, pay interest each June 30 and December 31, and mature in four years. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.)

-Prepare the journal entry to record the issuance of the bonds.

-Prepare the journal entry to record the interest payment on June 30, 2014. Use effective-interest amortization.

-Show how the bond interest expense and the bonds payable should be reported on the June 30, 2014, income statement and balance sheet.