On January 1, 2016, for $17.6 million, Cenotaph Company purchased 8% bonds, dated January 1, 2016, with a face amount of $19.6 million. For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)

1.

Prepare the journal entry to record interest on June 30, 2016, using the effective interest method.

2.	Prepare the journal entry to record interest on December 31, 2016, using the effective interest method.

1. Prepare the journal entry to record interest on June 30, 2016, using the effective interest method View transaction list Journal entry worksheet Record the entry to interest on June 30, 2016, using the effective interest method Note: Enter debits before credits. Date General Journal Debit Credit June 30, 2016 Interest expense 880,000 Discount on bonds payable Cash 96,000 784,000 Record entry Clear entry View general journal 2. Prepare the journal entry to record interest on December 31, 2016, using the effective interest method. View transaction list Journal entry worksheet Record the entry to interest on December 31, 2016, using the effective interest method Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2016:Interest expense 884,500 Discount on bonds payable Cash 100 784,000 Record entry Clear entry View general journal